The cost of governance increases and other weekly topics

BRAZIL POLITICS - Report 10 Mar 2025 by Murillo de Aragão and Cristiano Noronha

Expected this week: President Lula (PT) swears in Alexandre Padilha (PT-SP) as Minister of Health and Gleisi Hoffmann (PT-PR) as Minister of Institutional Relations. Party leaders discuss the vote on the 2025 Federal Budget. In the Lower House, negotiations continue over the leadership of the Permanent Committees. Camex meets to eliminate the import tax on certain food products.

This week's Talking Points include:
• The post-Carnival political timeline.
The political year only truly begins after Carnival. In the short term, a series of events could be decisive for the remainder of President Lula’s (PT) term.

• The PT in the Ministerial Reform.
The reshuffling of the ministerial team for the second half of Lula’s third term has been slow and, so far, has mainly consisted of internal PT repositioning. So far, the Ministerial Reform points to an ideological tightening within the government, raising concerns among centrist parties, which are essential for ensuring governability.

• The cost of governance increases.
The appointment of Federal Deputy Gleisi Hoffmann (PT-PR) to the Secretariat of Institutional Relations, which will be responsible for the government's political coordination with the National Congress, displeased the parties that make up the Centrão, creating greater challenges for the government in managing its base and raising the cost of governance.

• The Caiado/Gusttavo Lima ticket.
The governor of Goiás, Ronaldo Caiado (União Brasil), who will launch his pre-candidacy for the presidency on April 4 for the 2026 elections, will begin a political tour across the country alongside Brazilian countryside (sertanejo) singer Gusttavo Lima, who is not yet affiliated with any party. According to Caiado, he and Lima will build a ticket to run for the presidency.

• In a political strategy, the government eliminates import tariffs on certain food products.
In an effort to lower food prices, the government decided to eliminate import taxes on certain products, including meat, coffee, corn, sugar, olive oil, sunflower oil, sardines, biscuits, and pasta. The move triggered a negative reaction from the Parliamentary Agricultural Front (FPA). Economists also weighed in, stating that, in general, the tax exemption may have a short-term impact but does not solve the problem entirely.

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