Lula pledges not to make major privatizations if elected

Leading in all polls, former President Luiz Inácio Lula da Silva has promised to halt major privatizations if he wins a third presidential term in October. That would include oil giant Petrobras, as well as Eletrobras, Latin America’s largest energy company, and Correios, Brazil’s postal service. 

Last week, Mr. Bolsonaro said privatizing Petrobras would rid him of a “problem.” The president referred to the oil company’s recent decision to hike fuel prices by double-digit rates. 

In addition, the government has plans to dilute its stake in publicly-traded Eletrobras by May, handing it to private control. It also hopes to get moving on the sale of Correios.

According to CNN Brasil, Mr. Bolsonaro’s re-election program could feature a promise to create a poverty-eradication fund with the funds generated from major privatizations. However, privatizing any of these companies during an electoral year seems like an unrealistic dream.Brazil currently counts 187 federally-owned companies.

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