Lula would not appoint a super minister for the Brazilian economy

Investors eager to know who will oversee Brazil’s economic policy in a potential Luiz Inacio Lula da Silva they will have to wait, but they should not wait for the appointment of an all-powerful minister, according to one of their main allies.

Lula, who is leading the polls ahead of the October elections, is being advised by a large group of economists, including several former ministers, with no clear favorites emerging for now. Months before the elections, the leftist leader is in no hurry to choose his economic team, according to Wellington Daysone of Lula’s campaign coordinators.

It is unlikely that whoever ends up in office will enjoy the same sweeping power as Paul Guedes He currently serves as Minister of Economy. Guedes, who was dubbed by the president Jair Bolsonaro What “Ipiranga Post” –or gas station Ipirangareferring to an advertisement where a service station has the answer to all of life’s questions – from economic affairs, it handles what used to be three ministries, earning it the nickname of “super minister”.

“Lula works as a team”Dias said during a video interview from Sao Paulo. “His government will be the result of talks with parties that are supporting his candidacy”.

The idea that Lula is ultimately responsible for all economic decisions, as he himself has said during the electoral campaign, and the absence of a successful name leading the economy could be a cause for concern for investors who want guarantees that their Government will follow a pro-business strategy.

But Dias says those fears are misplaced. Lula’s past administrations are proof that he will not be fiscally irresponsible, he noted, adding that “no one can question” Lula’s ability to listen and talk to everyone.

A generation gap could be one reason some investors fear Lula’s election, according to Dias, a seasoned politician who recently resigned as governor of the state of Piauiin the northeast of the country, to run for the Senate and help in Lula’s campaign. The 76-year-old former president left office more than 10 years ago, he says, meaning there is a younger generation that has only heard of Lula’s achievements in handling inflation and poverty, but he has not experienced them.

“There is a new generation that has not lived under a Lula government”said Dias, 60. “Our challenge is to show them that he represents stability, fiscal responsibility and respect for institutions”.

The former president has criticized the spending cap rule of Brazil, which limits the growth of public spending and is appreciated by investors. Dias, along with other advisers to Lula, says that the rule must be revised because the country needs to increase public investment, and it is feasible to have an investment goal and a balanced public budget at the same time.

When asked if he would accept the job, he laughed and said it would be a “enthusiastic contributor” of the Bell.