After the National Congress suspending two decrees of President Luiz Inacio Lula da Silva that increased the tax rate of IOF (Tax on Financial Operations), ruling leaders of the House of Representatives and Senate try to convince the Planalto not to judicialize the decision. The predominant evaluation among allied parliamentarians is that resorting to the Supreme Court (STF) can further intensify the already delicate relationship between the Executive and the Legislature and pave the way for new institutional crises.
One of the vice-leaders of the government in the House, Deputy Pedro Paulo (PSD-RJ), classified as “worst choice” the eventual trip to the judiciary.
– Right or wrong, the decision of Congress is legitimate. Judicialize conflicts weaken the institutions. I believe the government will have judgment, ”he said.
Despite the appeal for moderation, there are sectors within the base that defend a more direct confrontation. Shortly after the vote that overturned the decrees, the PT leader in the House, Lindbergh Farias (RJ), climbed the podium to criticize the decision, classifying it as unconstitutional.
– They are taking $ 12 billion from the budget, and this demonstrates their fear of Lula. They are guiding everything based on the election, ”he said.
Concern about the fiscal impact of the decision unifies the base discourse. With the hole estimated at $ 12 billion, governors warn that it will be necessary to seek an urgent alternative to recompose the revenue. Government sources heard by the report state that, despite the resistance of some allies, the tendency in the Plateau is to judicialize the issue as a way to avoid budget cuts – including parliamentary amendments.
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“The economic team found no alternative other than the maintenance of the collection with the IOF,” said a palace articulator.
The defeat in Congress was expressive. In the House, the bill to overthrow the decrees was approved with 383 favorable votes and 98 against. In the Senate, the vote was symbolic, without nominal registration, signaling a consolidated articulation between opposition and part of the base, in a gesture of dissatisfaction with the government.
In an interview with the newspaper Folha de S. PauloFinance Minister Fernando Haddad admitted that the judicialization is on the radar. Already the Minister of the Attorney General of the Union (AGU), Jorge Messias, said that the decision has not yet been taken.
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“The Federal Attorney General informs that, in response to the news released in the media about the judicialization of the IOF decree, there is no decision made and that all legal issues will be technically addressed by AGU, after hearing the economic team. The communication of any legal consequences of the case will be made exclusively by the appropriate lawyer,” says the statement issued on Thursday.
Behind the scenes, government assistants admit that the episode exposed the weakening of political articulation. Judicialization could impose a new defeat.
