President Luiz Inácio Lula da Silva (PT) criticized hard on Wednesday (2), the conduct of the mayor, Hugo Motta (Republicans-PB), in the vote that overturned the decree of the executive that increased the IOF (tax on financial operations). In an interview with Morning newspaperfrom Bahia, Lula classified the decision as an “absurd” and said that there was a break from institutional agreement.
“The mistake was the breach of an agreement made on a Sunday night at the mayor’s house. When Tuesday arrives, the mayor makes a decision that I considered absurd,” said Lula.
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The president said he intends to talk to Hugo Motta and Senate President David Alcolumbre (Brazil-AP Union), after returning from the BRICS leaders summit, which takes place on July 6 and 7. According to him, only after this conversation does it intend to “return to normality.”

Judicialization
Lula’s statement occurs one day after the Attorney General of the Union (AGU) filed in the Federal Supreme Court (STF) a declaratory action of constitutionality (ADC).
The case is under the rapporteur of Minister Alexandre de Moraes. For Union Attorney General Jorge Messias, the decision of Congress violates the principle of separation of powers, since only the Supreme Court can declare the unconstitutionality of normative acts.
“The measure adopted by the National Congress eventually violated the principle of separation of powers,” said Messiah.
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Political defeat
The overthrow of the decree by Congress was the largest political defeat of Lula and Minister Fernando Haddad (farm) in the House since the beginning of the government. The vote was interpreted by allies as a direct message from the mayor to the Planalto Palace.
In the Senate, the vote occurred symbolically, without nominal registration of the votes. After the result, Alcolumbre stated that the measure represented “a defeat of the government built in several hands.”
The increase in the IOF aimed to reinforce the collection and help in the execution of the budget, in the face of pressures by fiscal balance. The IRS estimated a positive impact of $ 12 billion on the measure.
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Despite the legal support alleged by AGU, the attempt to increase the IOF faced resistance from parliamentarians and the productive sector, who reacted to the possibility of raising the tax burden.