Lula says he worries about public debt and interest and reaffirms commitment to fiscal responsibility

President Luiz Inácio Lula da Silva (PT) said during a speech on radio and TV this Sunday night (8) that he is concerned about the trajectory of public debt and the interest rate and reaffirmed that he is committed to fiscal responsibility.

"Inflation is under control and worker income is growing. The trajectory of public debt and high interest rates worries me. Therefore, I reaffirm my commitment to fiscal responsibility to enable sustainable social policies and the much-needed expansion of investment. Therefore, efforts must be made to preserve fiscal rules. One of the main objectives of our government is to take the country's investment to more than 20% of GDP in partnership with the private sector. To this end, we will create the conditions to reduce the interest rate", said Lula.

Re-elected for a fourth term, Lula arrives in the post-election period with the challenge of assembling a new team, negotiating with a more right-wing National Congress and reconciling the promises presented during the campaign with the restrictions on public accounts.

The government begins the new period under pressure mainly in the areas of public security, health and economy.

In his first speech after his victory, Lula stated that he intends to govern for the entire country and indicated as priorities topics such as public security, education, health, regulation of digital platforms and the relationship with Congress.

Setting up the ministry

Even though it is a re-election, the PT leadership believes that it will be necessary to make a transition between the third and fourth terms. The party's president, Edinho Silva, stated that Lula should talk to the parties about the composition of the new government after COP31.

According to Edinho Silva, Lula is currently focused on completing his current term and organizing with the presidents of the Chamber of Deputies, Hugo Motta (Republicanos-PB), and the Federal Senate, Davi Alcolumbre (União-AP), the proposals that still need to pass through Congress.

Among the changes already planned is the creation of a Ministry of Public Security, a proposal presented during the campaign.

Congress will be one of the main challenges

The composition of Congress is one of the main political obstacles for the fourth term. The PL, the party of the defeated candidate, senator Flávio Bolsonaro (PL-RJ), will have 121 deputies and 29 senators from 2027.

Furthermore, PP, União Brasil, Republicans, Podemos and Novo supported Flávio Bolsonaro in the second round. Together, these five parties elected 245 deputies and 51 senators.

The base formed by PT and allied parties is smaller. The scenario will force the Palácio do Planalto to once again seek votes from parties from the center and Centrão to form a majority in both Houses. Lula acknowledged this scenario in his speech after the election, but stated that he intends to negotiate with the Congress chosen by the polls.

"I did not choose Congress, it was the people who chose it and it is with them that I will vote, I will work and I will approve things", he stated.

President Luiz Inácio Lula da Silva (PT) during the 1st Meeting of the National Council for the Industrialization of Critical and Strategic Minerals (CIMCE), at Palácio do Planalto. — Photo: Ricardo Stuckert