BRASILIA, Oct 5 — Brazilian President Luiz Inácio Lula da Silva is reportedly considering Vice President Geraldo Alckmin for the role of finance minister if he secures re-election. This move aims to enhance Lula’s fiscal credibility and attract centrist voters, especially following an unexpected performance by Senator Flavio Bolsonaro in the recent first-round election.
According to two sources familiar with the discussions, Alckmin could serve as both vice president and finance minister, solidifying his role in shaping economic policy. These discussions remain ongoing and have not yet reached a final decision.
The Brazilian presidency has not commented on the matter. Alckmin is a seasoned centrist politician who previously faced Lula in the 2006 presidential election and has held two terms as the governor of São Paulo. Earlier this year, he led the Ministry of Development, Industry and Trade, playing a vital role in interactions with the United States amid tariff changes impacting Brazilian goods.
Perceived as a stabilizing influence within Lula’s administration, Alckmin maintains strong connections with the business sector. However, some critics argue that his approach has been overshadowed by policies viewed as progressively leftist during Lula’s current term.
In 2022, Lula had also considered appointing Alckmin as finance minister but ultimately selected Fernando Haddad from the Workers’ Party after winning both rounds of the election.
Lula, running for a fourth non-consecutive term, placed second in the recent first-round election, trailing behind Senator Bolsonaro, who is the son of former President Jair Bolsonaro and has close ties to Donald Trump. This result was surprising to many, as polls suggested Lula would have a narrow lead.
The outcomes of the election, along with Bolsonaro’s right-wing allies gaining traction in Congress, triggered a significant market rally on Monday. Investors are optimistic that a Bolsonaro administration might facilitate quicker fiscal reforms backed by broader legislative support.
Since Lula’s tenure began, Brazil’s gross public debt has increased by over 10 percentage points of GDP, now standing at 82.9%. This financial trend poses a considerable challenge for Lula, even as the country experiences lower inflation, robust economic growth, declining unemployment, and an increase in real wages.
Following the results of the first round, Lula highlighted Alckmin’s significance in his campaign strategy, asserting, “No one in this country has the moral authority to lecture me or Alckmin on fiscal policy or fiscal responsibility, given what he did in São Paulo state and what we did in Brazil.”
Sources indicate that appointing Alckmin as finance minister could be a strategic move to garner support from voters seeking fiscal accountability, who may be hesitant to align with Bolsonaro yet feel disillusioned by what they regard as populist trends in Lula’s policies.
