President Luiz Inacio Lula da Silva’s decision to file a lawsuit at the Supreme Court (STF) to question the overthrow of the decree changing the tax on financial operations (IOF) is an attempt to return to the game and open a trading front, say government assistants.
The understanding is that judicialization is the natural reaction after Congress advances on the prerogative of the executive to move the IOF, not a movement of “all or nothing”.
The same strategy has already been used by the Ministry of Finance in other discussions with the House and the Senate.
In the current case, the government evaluates that the congressional summit broke the agreement signed to resolve the impasse related to IOF.
After the mayor’s ultimatum, Hugo Motta (Republicans-PB), by an alternative to the original decree, Finance Minister Fernando Haddad even read the draft of the substitute measure, according to interlocutors.
However, days later, Motta returned to the burden against the proposals and guided the urgency of the project that would overthrow the decree.
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For auxiliaries, all the reasons pointed out in recent days to explain the turnaround of Congress are “small” and only seek to divert attention from the real reason: the anticipation of the 2026 electoral dispute.
However, the breach of the government’s unquestionable agreement and defeat in the vote that overthrew IOF served to unite ministers that traditionally diverge, such as Haddad and Gleisi Hoffmann, head of the Secretariat of Institutional Relations, in an agenda for next year’s campaign: the “rich against poor” speech.
The strategy now is to reinforce that the government wants billionaires, banks, and betting companies to contribute to the poor to have a slightly more dignified life.
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In this sense, in the opinion of an interlocutor, the opposition strategy of “making a bleeding government” turned out to be a mistake. Now, although the opposition is a favorite for 2026, Lula is back in the game, he said.
