The government will collect its weapons after it seals the government’s spending cut package. While the ideas are still on the president’s desk, sectors of the party are working to push the adjustment to the left. When the proposals receive the chief’s signature, no one will leave him alone, in the words of party leaders.
The impasse in drafting the measures, the opposition of ministers and the internal division within the PT are part of a fight for the future. No one knows for sure how big the adjustment will be, but his political process gives clues as to what the final two years of Lula’s third term could be like, his chances of re-election and the paths the left will take.
A considerable part of the PT classifies the package as a betrayal. In the first half of his term, Lula’s return to power was anchored in measures such as the expansion of social benefits and the recovery of a minimum wage policy. , even if they make sense from a fiscal point of view, affect these two pillars.
The discussion is a reminder of some dilemmas that Lula will still face. First, it will have to decide whether to double down on the current formula, even though its impacts have proven to be more modest than in previous mandates. The second question is whether the adjustment will leave room in the coffers to follow this path and, also, look for new brands that will help the government reach 2026.
The PT’s complaints gave impetus to the idea of also seeking cuts in military pensions and parliamentary amendments, to stop any review of social expenses. Everything indicates, however, that the president was convinced of the need for an adjustment, also thinking about avoiding a risk of inflation that would weigh even more heavily on the next campaign.
The choices made in this field must influence the direction of Lulism, the PT and the left. They will show the weapons that the party intends to use to reconnect with its bases and, more specifically, will say whether the party considers Haddad an obstacle or a character capable of leading the next cycle.
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