New debts are likely to burden the budget in Brazil

Petrobras

Public companies like the Brazilian oil company could become a plaything for the new government.

(Photo: Reuters)

Sao Paulo “It’s easier to win an election than to put together a cabinet,” declared Brazilian President-elect Luíz Inácio Lula da Silva recently. Since his election victory at the end of October, he has been almost exclusively occupied with selecting personnel for his government.

There should be 37 ministers. In addition, there are so many key positions in state-owned companies and authorities. A few days before taking office on January 1, the heads of important ministries such as mining and energy, infrastructure or agriculture are still vacant.

The reason for the tough personnel decisions: Lula only has a minority of votes in Congress. That is why he needs to include as many representatives of the centre-right parties in his government as possible. In Brazil, this is traditionally done with item or budget allocations.

While many previous appointments, for example in defence, the judiciary or for the foreign ministry, have also been welcomed by the opposition, some economic policy decisions are already making investors’ hair stand on end.

Top jobs of the day

Find the best jobs now and
be notified by email.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Continue

source site-13