Lula elects enemies to dribble first-year nightmare – 02/04/2023 – Bruno Boghossian
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When he was still on the campaign trail, Lula recognized that the economy would be difficult to start a new term. The government’s accounts would have to go through adjustments, the ministers would need to dig results, and the activity would take a few months to react. Sitting in the chair, the president realized that this window of time could be longer.
The petista began to live with the nightmare of going through the entire first year of government in a scenario of low growth and a sluggish job market. Supporters consider this to be the biggest threat to the popularity of a president who came to power with a promise of economic recovery.
Lula’s fight with the Central Bank is part of a political reaction to this risk. In recent weeks, the PT has attacked the interest rate set by the body and even announced the intention to review the autonomy granted by law to the institution.
The president’s mood soured after the BC indicated, on Wednesday (1st), that interest rates could remain at the current level until the end of the year. For the PT, the decision already affects credit-dependent sectors, with the capacity to kill the growth of 2023 and even spill over into 2024.
Lula elected the bank command as an enemy to be publicly faced. The president has expanded the list of opponents because he knows that linking Jair Bolsonaro’s debacle to the shaky economy guarantees temporary relief, but it will not be as effective for more than a year.
The government’s plan is to hammer home the idea that the bank’s policy would be one of the main barriers to growth and job recovery — and that Lula’s hands would be tied due to autonomy rules.
Petistas say that the clash should also be read as a call for government members to react to this situation. Lula hopes to reduce internal resistance and accelerate stimulus measures that depend on public coffers, such as a minimum wage readjustment, a work plan along the lines of the PAC and the return of Minha Casa, Minha Vida.
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