Bolsonaro is a threat to Brazil, says Natura co-founder as he opens vote for Lula

Entrepreneur Pedro Passos, co-founder of Natura, was one of the first, at the beginning of 2021, to defend the construction of a third way in the presidential elections. Afterwards, he chose Simone Tebet (MDB) and made contributions to his candidate.

With the polarization proving insurmountable at the polls in the first round, he also takes the lead in another movement that was highlighted on the economic scene in this first week of the second round: he declared his vote for Luiz Inácio Lula da Silva (PT).

“I open the vote for Lula because we are facing an institutional threat with the Bolsonaro government,” he said. “And Brazil cannot live under threat.”

According to Passos, the current president of the Republic also broke promises in the economy. “It’s a government that promised to be liberal, but it’s nothing liberal,” he said. “It’s interventionist.”

The businessman points out that the institutional risk of the current administration has even contaminated the economy, with bursts of the spending ceiling and the indiscriminate use of the PEC (Proposed Amendment to the Constitution) instrument to implement measures that are not healthy for the economy.

“I don’t have any expectations that he can do anything very different going forward,” he said.

In 2018, Mr. wrote an article in Folha entitled “What is my vote”, defending an agenda of changes, but did not name names. Now, why mr. Do you feel this need to open the vote? I open the vote for Lula because we are facing an institutional threat with the Bolsonaro government and also because I have been following the election. I supported the construction of an agenda with Simone’s program.

Effectively, in the first round, we had the surprise of a greater vote for Bolsonaro than expected in the polls, and we saw the election of a very radical right-wing Congress, along the lines of Bolsonaro. I am very afraid that this will be reflected in a strong government with reactionary tendencies. I am very afraid of what can happen institutionally

Just look at what has happened in recent periods. Several aspects, which we assumed to be unconstitutional, were implemented. We had the PEC Kamikaze, the PEC for precatories, the benefits in an election year. And the Supreme [Tribunal Federal] is still disrespected. We are facing many challenges.

I thought it was important to open up even to express the orientation that we discussed within the group that supported Simone, who decided to support Lula.

Five economists linked to the creation of the Real and the stability of the currency, as well as entrepreneurs like Mr. already declared support for Lula. Mr. do you expect any nod from Lula in the economic area from this public support? I hope so. Unfortunately, the program that the PT has signaled is very outdated. Whether through interventionism, or through the influence it predicts in state-owned companies, through the maintenance of a closed economy, or through the review of some important reforms, such as labor.

It is not the agenda we envision for Brazil.

And what would be? First, we need fiscal stability. The best way to achieve social goals is to keep public accounts in order, because this lowers the interest rate and attracts investments. But we also need a modernization agenda. We cannot have Brazil always behind, isolated from the world, with low international insertion and low productivity.

In the productivity agenda there are several components and it has been kind of forgotten. It is important that the Lula government moves towards the necessary reforms to raise productivity.

What is your assessment of the Bolsonaro government in the economy? It is a government that promised to be liberal, but it has nothing to be liberal. It’s interventionist. Intervened at Petrobras several times. Did not respect the spending ceiling. It did not evolve with the reforms. Tax reform is agreed but not implemented.

Speaking of education, the high school reform, approved under Michel Temer, was not implemented by the Bolsonaro government. In fact, education was a tragedy. Not to mention the environmental issue.

I don’t have any expectations that he can do anything very different going forward.

But my biggest concern with Bolsonaro is how he deals with the institutional part, with democracy. He is a threat, and Brazil cannot live under threat.

What is your scenario for the economy in the year that he comes? It’s going to be a difficult year. No big growth. We will have to discuss how to make the transition in the face of the dynamite left behind by the current government. The international scenario signals recession, or at least low growth in the United States. And then there’s the war in Ukraine, which is undefined. It won’t be easy in 2023, nor in 2024.

Mr. have you noticed that you have outlined a transition scenario as if Lula had already been elected? [risos] I don’t have electoral analysis skills. Perhaps here I have expressed the scenario that I think is best.