Solon Brochado: As if he didn’t have his hands full, Lula now has to deal with dissent in his own ranks. It seems to be only another episode in the historical divide between left-leaning petistas and moderate ones. Those on the left side of the party, commonly referred to as shiites, have never been very pleased with the economical orthodoxy of Treasury minister Antonio Palocci, but have never been able to touch him due to the country’s most solid numbers in decades.
But now, Palocci has been weakened by evidences of corruption during his term as mayor of Ribeirão Preto, that were raised in the CPIs. It was the opportunity shiites were looking for. Dilma Roussef, the Chief of Staff, has been very critical of the minister of late, never missing a chance to state her opinions in newspapers or during political meetings. Palocci, while apparently ready to step down if the president deems necessary, is also using the media to defend himself.
The situation has come to a point when Lula had to call both ministers and tell them to, basically, shut up and help the party and the government get out of the current crisis, instead of giving fodder to the opposition, which has been more than happy to help undermine Palocci’s stand. It is amazing that, after all this time, petistas still approach the government from a student politics standpoint.
Below, an op-ed by Kennedy Alencar, Folha de S. Paulo’s special reporter in Brasília, and their main political commentator.
Lula rejects “alternatives” to Palocci
Does the Treasury minister, Antonio Palloci Filho, remains the only pillar to politically and economically sustain the Lula administration or can he be replaced without a big storm? To Lula, the government ends if Palocci falls.
With this diagnosis, the president called Palocci and minister Dilma Rousseff (Chief of Staff) for a meeting thursday morning at the Granja do Torto. He reprimended both, saying he doesn’t want them discussing “economy through the newspapers”. He ordered them to avoid “tackles” through the press. He asked for “unity” in a time of crisis.
It is unbelievable that amidst the gravest political crisis of his administration, Lula still has to send these kind of messages. It proves the inability of his administration’s and even of the PT’s leadership to administer tough times and run the country.
At a time of crisis, an administration’s first rule should be to not aggravate it. Dilma, meanwhile, has been hitting hard on the Treasury minister through the press, government reunions and meetings with congressmen.
In a benevolent version, she attacks her colleague for his lack of political skils. In a more slanderous one, for feeling Palocci’s current weakness and trying to turn the economical debate in her favor. Maybe both versions are complementary.
Palocci has pondered the possibility of leaving his post. “I don’t know whether I’m helping the country anymore [by remaining on the Treasury]”, he told the president, who refused to consider his departure. To Lula, his term would be over with the Treasury minister’s fall.
Even susbtituted by a technician from the current economical team, such as Treasury executive-secretary, Murilo Portugal, or Henrique Meirelles, Central Bank’s president, Palocci would be thoroughly missed, ponders the president. Little by little, that technician would be swallowed by the PT. And along with him, the economical credibility.
If he came to be replaced by a more orthodox alternative, such as representative Delfim Netto (PMDB-SP) or the economist Afonso Celso Pastore, Palocci would be even more missed, in Lula’s opinion. There would be an open war between the new minister and the PT. Another complication: Lula would hardly hand the Treasury to someone outside his own party.
One name that’s been vented behind the curtains as a substitute for Palocci is Guido Mantega, president of the BNDES (National Social and Economical Development Bank). Despite being a petista, he doesn’t have the political density of Palocci. From the Dilma bunch, he would frighten the market. He would have to be even more orthodox than Palocci to gather confidence, believes the president.
Which is why Lula will hold on to Palocci for as long as he’s able to. If he loses him, the president believes he’ll walk toward a melancholic end of term. And will throw his reelection chances in the trash.
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Give me some money
During a recent dinner with senators from the PMDB bench, Dilma attacked Palocci heavily. The Senate’s president, Renan Calheiros (AL), interested in broadening public spending (specially for his political base), seized the opportunity. He hit hard on the minister. He said Palocci doesn’t fulfill agreements and asked for resources - recently, he allocated millions for Alagoas mayors investigated by the Federal Police.
Congressmen who know the phisiological appettite of the Senate’s president joke that if Palocci caves in to Renan’s plead, there’s a possibility the country will go broke.
