HomeBRAZILRISING TENSIONS BETWEEN LULA AND CONGRESS

RISING TENSIONS BETWEEN LULA AND CONGRESS

The federal government and the National Congress have engaged in a series of clashes and negotiations involving key issues on Brazil’s political and economic agenda. With just over a year before the 2026 elections, the Lula administration is attempting to advance proposals that may underpin the president’s potential bid for a fourth term. The Lula administration’s decision to raise the IOF tax rates to boost revenue sparked a strong backlash from both lawmakers and the private sector, intensifying tensions with Chamber Speaker Hugo Motta. Meanwhile, the Senate advanced a constitutional amendment to end reelection for executive positions, as the government recalibrates its political strategy by focusing on smaller-scale projects under the new Growth Acceleration Program (PAC). Amid international disputes involving the Supreme Court and criticism of the far right, concerns have also been raised about a shortage of qualified personnel to carry out critical infrastructure plans.

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