Brazil's Lula da Silva taps ex-mayor as finance minister amid economic crisis

Published on Dec 10, 2022 06:38 AM IST

Brazil Economy: Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes.

Brazil Economy: Finance Minister nominee Fernando Haddad.(AP)
Brazil Economy: Finance Minister nominee Fernando Haddad.(AP)
AFP |

Brazil's president-elect Luiz Inacio Lula da Silva on Friday named former Sao Paulo mayor Fernando Haddad, viewed unfavorably by many in the business community, as his finance minister.

Lula da Silva, who narrowly defeated incumbent Jair Bolsonaro in October elections, unveiled ministers in the key posts of foreign affairs, justice, defense, and chief of staff.

However, all eyes were on his pick for finance minister, with markets nervous over the incoming government's commitment to fiscal discipline and the inflation-hit economy in fragile recovery.

"(I chose) comrade Fernando Haddad as Minister of Finance," Lula said during a press conference in the capital Brasilia.

Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes, an ally of far-right President Jair Bolsonaro.

Read more: Animal rights group PETA is suing UK military, a request to King Charles as well

After Lula's new government takes office following his January 1 inauguration, the economy ministry will be dissolved and transformed into finance, industry and planning agencies.

When Haddad's name started circulating for the role, markets reacted with unease, viewing him as too much on the left and fearing he would jeopardize the budgetary balance.

"He represents the heterodox economic policy" that Lula's Workers' Party (PT) defends, said Antonio Madeira of the MCM consultancy firm.

Madeira said that with Haddad in the finance ministry, he expects "an increase in spending" and "a more assertive state giving a significant role to public companies."

Despite some of the reluctance towards Haddad, the Sao Paulo Stock Exchange's Ibovespa index was up Friday by 0.5% after the names of the future ministers were announced.

Haddad said that in 2023 he will prioritize tax reform, a new fiscal framework, as well as "recover the international agreements that are stopped," such as Mercosur-European Union.

Get Latest World Newsalong with Latest Newsfrom Indiaat Hindustan Times.
SHARE THIS ARTICLE ON
SHARE
Story Saved
OPEN APP
×
Saved Articles
Following
My Reads
My Offers
Sign out
New Delhi 0C
Wednesday, February 01, 2023
Start 15 Days Free Trial Subscribe Now
Register Free and get Exciting Deals