support for state interventionism and Lula’s economic agenda

Although he faces resistance from opposition senators, Flávio Dino, Minister of Justice appointed by President Luiz Inácio Lula da Silva (PT) to the Federal Supreme Court, should have his name approved by the Senate plenary and, thus, reinforce the influence of the PT administration in Cut.

His appointment comes at a time when the Supreme Court prioritizes economic agendas in clear alignment with the Executive. Matters with a direct impact on revenue collection and Treasury accounts, such as the release of precatório payments, give the government extra strength in its task of achieving the primary result targets, provided for in the fiscal rule.

On the radar of economic agendas at the STF are the resumption of the judgment on the State Law, the decision on government representation in the privatized Eletrobras and the correction of the Severance Indemnity Fund for savings.

The expectations of experts consulted by the People’s Gazette is that Dino consolidates in the Court a vision that is more left-wing, nationalist and, clearly, close to that of Lula and the PT. “As much as the minister is expected to guide himself with independence and technical criteria, Dino is Lula’s trusted man”, says José Paes, master in Law and member of the OAB’s Constitutional Law Commission.

Rodrigo Marinho, executive director of the Free Market Parliamentary Front (FPLM), is more blunt. “If he passes the hearing, which I hope will not happen, he will be an ally of Lula in government agendas, contributing to the politicization of the Judiciary,” he states.

Politicization and “redness” of the Federal Supreme Court

In addition to the politicization of the STF, which has been the subject of conflict with the Senate, the risk, for the minister’s critics, is a “redization” of the Court. Dino, today in the PSB, started his political life in the PCdoB and carries the stigma of a “communist” and a “dangerous” opponent among the right-wing population. He is classified as more to the left than minister Luiz Roberto Barroso, celebrated by progressives.

“He proudly calls himself a communist. He will be against any topic of market opening, free trade and following in Lenin’s footsteps, as he himself says”, highlights Marinho.

As governor of Maranhão, for two terms (2015-2022), Dino was considered pragmatic, even promoting partnerships and private investments. But it probably will not support measures that reduce the State’s presence in economic sectors.

“The economic vision is retrograde and ideological. Just look at the destruction of the economic indicators of Maranhão, which he governed”, highlights Marinho.

Decision on Eletrobras may reveal interventionist bias

Presented by the Executive to the Federal Supreme Court, an action to expand the Union’s voting power in Eletrobras decisions, privatized in 2022, is one of the most emblematic of the State’s intervention to be assessed by the Court. If his name is approved by the Senate, the new magistrate will be able to participate in this trial.

In May, through the Federal Attorney General’s Office, the government sued the STF against sections of the law that authorized the sale of the company. The action challenges the provision on the reduction in the Union’s participation in council votes.

Aiming at the company’s governance and diluting the power of the majority, the company’s privatization law prevented a shareholder or group of shareholders from exercising voting power greater than 10% of the number of shares.

The company’s policies are defined by a Board of Directors, with representation from both majority and minority shareholders. AGU’s argument is that the federal government, which holds around 42% of common shares, was harmed by the rule.

In August, the Attorney General’s Office, still under the management of Augusto Aras, expressed support for the government. The matter is reported by Minister Kassio Nunes Marques, who has not yet commented, and there is no scheduled date for voting.

“In this matter, as in others, the expectation is for more and more government intervention, with openness to more appointments, price controls and even an increase in the company’s share capital, all contrary to what benefits the market, generating inefficiency and distortion “, assesses deputy Luiz Philippe de Orleans e Bragança, president of the Parliamentary Free Trade Front.

State Law, Labor Law and FGTS correction

In the same sense, the deputy opines, Dino’s understanding of the State-Owned Companies Law, approved in 2016 to prohibit appointments of people directly linked to governments and with direct links to political parties to the board of directors of public companies, must be.

In compliance with the PCdoB’s injunction, the constitutionality of the law was being judged by the STF when a decision by the then rapporteur, former minister Ricardo Lewandowski, suspended part of the law, which allowed the appointment of Aloizio Mercadante to the presidency of the BNDES. The injunction remains in effect and the matter has no date to be resumed.

In labor law issues, such as intermittent employment contracts or decisions on applications, there is no doubt about the position of Dino, who was a labor lawyer at the beginning of his career.

Marinho considers it interesting to observe his position in relation to the FGTS correction index, in which correction is considered to be no lower than savings, an issue that should be judged in December, but which the Lula government seeks to postpone so as not to harm the financing sources of the FGTS. new My Home, My Life.

“The government understands that the worker’s money belongs to them, to make public policy in civil construction”, criticizes the director of FPLM. In this case, despite the right to correction being legitimate, Marinho does not believe in Dino’s favorable vote, if he actually starts to occupy a seat in the Supreme Court. “Between the worker’s rights and the government’s interest, Dino must prioritize the government,” he says.

Vocation for protagonism, articulation and authoritarianism

With a combative, debauched and sealing style, Dino’s arrival at the Supreme Court promises to contrast with the style low profile that newly inducted employees tend to adopt. “Due to his historical profile, the minister should become a protagonist in the Court’s articulations”, predicts Paes.

Sources linked to the market predict possible disputes for space with Alexandre de Moraes. With Gilmar Mendes, the relationship is one of friendship and is old. Dino was director of the Brasília Law School (Edap/IDP) in mid-2011, when the institute was founded by the STF minister.

The expectation of how the magistrates will accommodate themselves is viewed with caution by scenario analysts. Historically, the Supreme Court is a court fragmented in views and interests. The consensus is that, if Dino’s arrival at the Court is confirmed, the activism will continue, which should intensify the reaction of the Legislature, that is, the Senate, in relation to the advances made by the Supreme Court.

Opposition senators, who promise to make Dino’s hearing the toughest in the House’s history, criticize his performance as Minister of Justice, incapable of advancing the country’s public security needs. They also accuse the authoritarian and vindictive nature of the nominee, who sued the influencer Monark for calling him “fat”.

The most scathing criticism, however, is in relation to the minister’s refusal to provide the Ministry of Justice videos in the 8/01 episode. Senator Izalci Lucas (PSDB-DF) said that Dino “disregarded, despised and ignored” the National Congress during the CPMI, by missing invitations to clarify the facts.

“The minister, for more than a month, confused the Commission saying that he could only send it if he had authorization from the Supreme Court. And, incredible as it may seem, the Supreme Court ordered the delivery, and he simply didn’t send it. Now, I’m wondering a person like this in the Federal Supreme Court, with a lifetime mandate and with the profile he has”, said the senator in the gallery.