Politics · Brazil · 18 hrs ago

Lula and Flávio Bolsonaro face different challenges if elected president

Lula and Flávio Bolsonaro face different challenges if elected president

Brazil’s presidential runoff on Oct.

25 is between incumbent Luiz Inácio Lula da Silva and opposition candidate Flávio Bolsonaro.

Lula is seeking a fourth term, and the next president will face serious fiscal pressures.

During Lula’s third term, linking some public spending to revenue and restoring real increases to the minimum wage added 520 billion reais in spending over four years, according to the column.

Public debt has continued to worsen, while high interest rates have weighed on households and led to financial distress in the agricultural sector.

If re-elected, Lula would need to balance spending commitments with rules designed to limit spending, while aiming to bring real interest rates down.

Flávio Bolsonaro would also need to address the fiscal situation, but his bigger challenge could be managing Brazil’s political institutions.

A president from the right may find it easier to work with the Congress, but would still need to negotiate a shared agenda and distribute government positions among coalition partners.

Sources

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