BRASILIA — President Luiz Inácio Lula da Silva is reportedly considering appointing Vice President Geraldo Alckmin to also serve as finance minister if he wins a fourth, non‑consecutive term. The move is intended to strengthen the administration’s fiscal credibility and win over centrist voters after Senator Flávio Bolsonaro’s strong showing in the first‑round presidential vote.
Dual role under discussion
According to two sources familiar with the deliberations, Alckmin would retain his vice‑presidential duties while taking charge of the finance ministry next year. The proposal remains under discussion and the presidency has not commented.
Alckmin’s background
Alckmin is a seasoned centrist who challenged Lula for the presidency in 2006 and served two terms as governor of São Paulo. Earlier this year he led Lula’s Development, Industry and Trade Ministry, becoming a key liaison with Washington after the United States imposed broad tariffs on Brazilian exports.
Critics note that Alckmin’s influence has been limited in Lula’s current term by policies viewed as left‑leaning, but supporters argue his business‑friendly reputation could reassure markets and moderate voters.
Historical precedent
Lula previously contemplated naming Alckmin finance minister in 2022, ultimately selecting Workers’ Party member Fernando Haddad after winning both election rounds.
Election context
Seeking a fourth term, Lula placed second in the first‑round vote behind Senator Jair Bolsonaro Jr., the eldest son of former President Jair Bolsonaro and an ally of President Trump. The result defied most polling forecasts that had projected a narrow lead for Lula.
The unexpected outcome, combined with the electoral success of Bolsonaro‑aligned candidates in Congress, sparked a market rally as investors anticipate a Bolsonaro administration might deliver faster fiscal consolidation with broader legislative support.
Fiscal challenges
Since Lula took office, Brazil’s gross public debt has risen by more than 10 percentage points of GDP to 82.9 %. Despite this, inflation remains below historical averages, economic growth has exceeded expectations, unemployment is at record lows, and real wages have risen.
In remarks after the first‑round results, Lula emphasized Alckmin’s importance to his runoff strategy, stating, “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.”
Potential impact
Elevating Alckmin could attract voters concerned about fiscal credibility who are reluctant to support Bolsonaro but are growing disillusioned with what they perceive as an increasingly populist turn in Lula’s government.
The proposal underscores Lula’s effort to balance his left‑leaning agenda with a moderate economic team, aiming to reassure both domestic constituencies and international investors ahead of the decisive runoff.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
