See 5 moments that Lula gave in to the centrão in Congress – 10/28/2023 – Power

President Lula (PT) has sought to expand his support base in the National Congress, through negotiations with the centrão, who already occupy positions at the top level of the government, in addition to the presidency of Caixa Econômica Federal.

With an inconsistent number of parliamentarians in favor of Palácio do Planalto projects, parties such as Arthur Lira’s PP (AL) and the Republicans are putting pressure on Fernando Haddad’s (PT) economic agenda and asking for positions, in addition to the release of parliamentary amendments.

On the other, Lula adopts a strategy of dragging and dropping negotiations. This format of conversations with acronyms has slowed down the pace of voting and created tense moments for the PT member, who risked having his own organization of Esplanada dos Ministérios rejected in May.

See, in five different moments, how these episodes in search of positions and amendments, by center and right-wing parties in Congress, are linked to votes of interest to the Palácio do Planalto.

Lula-centrão negotiations in 5 points

1 – MP from the Esplanade

• When? End of May
• What was at stake? The entire ministerial structure created by Lula as soon as he took office, such as the dismemberment and creation of portfolios, in addition to the relocation of bodies between ministries
• What was negotiated? Promise to speed up the transfer of amendments and start the debate on changes in ministries. União Brasil appoints Celso Sabino to Ministry of Tourism
• What was the result? Lula had to give in to the recreation of Funasa (National Health Foundation), the target of greed for the center, and saw the Ministry of the Environment, owned by Marina Silva (Rede), being emptied; the restructuring was approved by 337 to 125, in the last hours before the provisional measure expired

2 – Casting vote Carf

• When? July
• What was at stake? Change in the rules of the administrative court that judges disputes between the Union and taxpayers over taxes — if there was a tie in the judgment, the action would be judged in favor of the government; proposal is one of Haddad’s plans to increase revenue
• What was negotiated? More than R$7.5 billion are released in amendments per week. Dialogue on ministerial reform is opened for the entry of the PP and Republicans into government
• What was the result? The Chamber of Deputies approved the proposal, which in August was also approved by the Senate

3 – Tax Reform

• When? July
• What was at stake? Discussed since the drafting of the 1988 Constitution, the change in Brazilian taxes provides for a unified tax, simplification of collection and progressive rates, which benefits those who earn less
• What was negotiated? Extra amendments, controlled by Lira, between R$3.5 million and R$7 million for each deputy
• What was the result? The Chamber approved the PEC by 382 to 118 and the proposal is now being processed in the Senate; the president of the House positioned himself as a guarantor of the text and asked for the removal of polarization on issues like this

4 – New tax framework

• When? August
• What was in game? The project ended the spending ceiling, approved under the administration of Michel Temer (MDB), in addition to changing how the government can spend; makes it possible to increase investments when GDP grows, and stops expenses when economic results are negative
• What was negotiated? Consolidates the appointment of André Fufuca (PP) and Silvio Costa Filho (Republicans) to the Sports and Ports and Airports portfolios, respectively
• What was the result? After changes by both the Chamber and the Senate, the framework was approved by Congress

5 – Offshore and super-rich taxation project

• When? October
• What was at stake? The proposal sought to close legal loopholes and tax so-called exclusive funds, used by the super-rich, and offshore companies (companies based outside the country); these funds only paid fees upon withdrawal, without semi-annual charges
• What was negotiated? Handover of the presidency of Caixa to the center, with the resignation of Rita Serrano and the choice of the bank’s vice-presidencies by Lira
• What was the result? The project was approved by the Chamber by 323 to 119, and now goes to the Senate