Former Mayor of Sao Paulo to be Brazil’s Finance Minister
2022.12.09 11:00
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Former Mayor of Sao Paulo to be Brazil’s Finance Minister
Budrigannews.com – After days of speculation, Brazil’s leftist President-elect Luiz Inacio Lula da Silva appointed Fernando Haddad, a former mayor of Sao Paulo, as his finance minister on Friday.
After defeating the incumbent far-right leader Jair Bolsonaro in October, Lula is scheduled to assume office on January 1.
Lula appointed Mauro Vieira, a career diplomat, as foreign minister, Jose Mucio, a former congressman, as defense minister, Rui Costa, governor of Bahia, as chief of staff, and Flavio Dino, a former governor of Maranhao state, as justice minister.
Brazil’s real weakened by as much as 1.3% against the dollar following Haddad’s appointment as finance minister, but it eventually recovered and traded down 0.9%. The benchmark stock index was up 0.3% in trading.
Investors have been uneasy since Lula’s announcement of a multi-billion-dollar plan to increase social spending starting next year. As a result, they have been eagerly awaiting his choice to run the economy.
The proposal has been approved by the Senate, but the lower house still needs to vote on it.
Friday, Haddad told reporters that he has begun to put together his team, but he would not immediately reveal any names.
Haddad, a lawyer with a master’s degree in economics and a doctorate in philosophy, has been mentioned as the next finance minister for weeks.
Investors are concerned about his excessive social spending and lack of fiscal restraint, despite the fact that he is regarded as a moderate within Lula’s leftist Workers Party (PT).
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From 2013 to 2016, Haddad was mayor of Sao Paulo, Brazil’s largest city. During that time, he renegotiated the city’s debt with the federal government, which resulted in a reduction of approximately 50 billion reais and an upgrade to investment grade.
On Twitter, he has referred to himself as a college professor ever since he lost his bid to re-elect himself as mayor in 2016.
During the 2018 presidential campaign, when Haddad was the PT candidate and Lula was barred from the race due to graft convictions that were later overturned, Haddad’s relationship with Lula grew.
He has acknowledged the dangers of debt, but he has argued that public spending can even out income distribution and increase economic growth.
Additionally, Haddad has supported the introduction of a value-added tax on consumption and modifications to income and wealth taxes.
