On Wednesday (25/10), President Luiz Inácio Lula da Silva (PT) fired economist Rita Serrano from the presidency of Caixa Econômica Federal, an important state bank. The decision was announced in a meeting at Palácio do Planalto. The new president is a trusted man of the political group known as the “Centrão”.
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Serrano Leaves, Fernandes Arrives
A Caixa employee since 1989, Maria Rita has been president of the institution since January. Previously, she served on the bank’s Board of Directors. She now leaves to be replaced by another economist and Caixa employee, Carlos Vieira Fernandes, who has already held positions of trust in “Centrão” party ministries in previous years. Fernandes is a Centrão nominee and has the endorsement of the President of the Chamber, Arthur Lira (PP-AL).
Not Enough
Despite the “Centrão” achievements, it is not yet satisfied. The group also seeks the vice-presidencies of Caixa and positions in National Health Foundation (Funasa).
The bloc’s pressure increases at a time when the government is racing against time to approve economic measures in Congress that are of interest to President Lula (PT). Government members already see a tight deadline of 60 days to advance the set of proposals by Finance Minister Fernando Haddad and the projects that deal with the 2024 Budget.
Senate Unhappy
The Senate rejected on Wednesday (25/10), Lula’s nomination, Igor Roque, to occupy the position of head of the Union Public Defender’s Office (DPU). The decision showed that the Senate, a space that in the beginning of this mandate had good relations with the Federal Government, is now unhappy. In other words, Lula is losing support in the Senate.
Ministerial ReformIn September, President Lula (PT) concluded the first major ministerial reform of his third term, with an internal reshuffle also to accommodate names appointed by the the “Centrão”. The leader of the PP in the Chamber, deputy André Fufuca (MA), and deputy Silvio Costa Filho (Republicanos-PE), became part of the government. They will occupy the Sports Ministry and Ports and Airports Ministry, respectively.
Analysis:
After the first ministerial reform from September, this new decision is another chapter of Lula’s effort to build and preserve his political support in Congress. While his political base is strong, it is far from being enough to guarantee that the government’s proposals will be approved. Thus, the current central administration must rely on deals with the Centrão, a bloc of parties that traditionally supports the federal government in exchange for positions and resources from the public budget. Federal Chamber President and “Centrão” leader, Arthur Lira, had already stated that the Caixa command was being negotiated to expand the parliamentary base of Palácio do Planalto.
