In a recent interview with Time magazine, former President Luiz Inácio Lula da Silva said he “doesn’t discuss economic policies before winning the elections.” An odd statement, to say the least, given that his economic agenda is precisely what frightens investors and big business the most. As proof, a group of business leaders are lobbying for Congress to alter Brazil’s Constitution before the election, hoping to limit what Lula could do if he does win October’s vote.
The push intends to take the core points of pro-business legislation passed in 2019 and transform them into constitutional principles. Known at the time as the “Economic Freedom Law,” it contained provisions simplifying and cutting red tape for business owners.
When first submitted, the Economy Ministry estimated the measure would add 0.7 percentage points to Brazil’s GDP every year over the following decade. Three years later, however, big business groups feel the law “hasn’t caught on” and that it risks dying completely if Lula wins the election.
In their view, amending the Constitution to include these pro-business provisions would be something of a “hedge” against Lula — who has promised to repeal the 2017 labor reform and to call off the privatization of major state-owned companies. However, despite the fears of financial elites, Lula as president was never the economic bogeyman he was portrayed to...
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