Lula orders state-owned companies to be removed from the privatization program and maintains a floor of R$ 600 in Brazil Aid

President Luiz Inácio Lula da Silva (PT) signed this Sunday (1st), shortly after his inauguration, the first measures in the economic area, including a determination for ministers to take measures to remove state-owned companies from the privatization program.

The measure particularly affects Correios, which were in the process of being privatized and were already being analyzed by members of the TCU (Union Court of Auditors). Companies such as EBC (Empresa Brasileira de Comunicação) should also be left out of the list for sale.

Lula had already stated in a speech after his election that privatizations would end in the country, which provoked reactions in the financial market. The measure represents a turning point in relation to the economic agenda of his predecessor, Jair Bolsonaro (PL).

Under the management of the then Minister Paulo Guedes, the Ministry of Economy encouraged the sale of subsidiaries and other assets of state-owned companies (such as those of Petrobras) and even sold control of Eletrobras.

In addition, Lula signed the provisional measure that maintains the payment of a monthly floor of R$ 600 for vulnerable families. The measure previously in force provided for this value until December 31, and Lula articulated a PEC (proposed amendment to the Constitution) to release resources from 2023 in order to maintain this minimum.