Doria opposes PT and proposes package to maintain ceiling and labor reform

The team of presidential candidate João Doria (PSDB) released this Tuesday (11) a document to oppose the economic positions presented so far by the PT of the current leader of the electoral race for the Planalto Palace, former president Luiz Inácio Lula da Silva.

In the text, the spending cap and the labor reform are defended, object of constant criticism from PT members. Last week, Lula and the president of the acronym, Gleisi Hoffmann, said that the change implemented in 2017 in labor relations could be annulled.

On Friday (7), Doria had already reacted to what he called the “PT delay”, which would be the general idea of ​​ending the economic framework implemented in the Michel Temer government (MDB), which sought to balance the country’s accounts after the recession of the years of Dilma Rousseff (PT), prevented in 2016.

Upon taking over the government of São Paulo in 2018, Doria took to his Finance Department the architect of Temer’s reforms, former minister of the area Henrique Meirelles, who had been president of the Central Bank during the eight years of Lula’s government (2003-10).

Now, Meirelles is part of Doria’s campaign team alongside economists Ana Carla Abrão, Zeina Latiff and Vanessa Rahal Canado. The team signs the document, which should be the first of a series on topics that will be put up for debate.

The topic of the ceiling is complex, as there is almost unanimity among economists that it needs to be reviewed in light of the country’s difficult fiscal situation. Doria makes her “hedge” in the text, saying that “there is no perfect rule”.

After praising the ceiling, six proposals are presented to ensure its feasibility until the revision provided for by law of the norm, in 2026. The first is one of the most controversial: revision of parliamentary amendments, “which are little committed to the quality of public spending” .

As is well known, the amendments, in their steroid version with full control by the Chamber’s command, are the mainstay of the centrão’s support for the government of Jair Bolsonaro (PL).

Doria also proposes to review inefficient social policies, citing the salary bonus and defense insurance, carry out an administrative reform, eliminate overlaps between FGTS and unemployment insurance, improve the Union’s legal defense to reduce precatories and audit social security benefits.

Regarding the labor reform, the document again praises it before suggesting corrections. Among them, reducing labor costs, protecting employees from applications, promoting professional training, carrying out a union reform, reviewing the system of benefits that stimulate labor turnover, protecting the income of informal workers and “improving the performance of the S System”.

The last item is politically thorny, and the others join the liberal suggestions to keep the ceiling on a range of ideas that will hardly be accepted by the left in an electoral campaign — if they can become reality, like the acceleration of PSDB policies made by Lula in his first term, it’s another story

The idea of ​​Doria’s team is to signal to the financial market that the toucan will remain firm in an economic orthodoxy if elected, but already indicating ways to face practical questions raised. This leaves PT on the defensive.

The said Faria Lima is refractory to the PT. His extensive favoritism, however, has forced analysts to study every suspicion of the former president’s direction in the economy. The talk about labor rules generated public concern even in the main candidate to be Lula’s deputy, Geraldo Alckmin (ex-PSDB).

In addition to the idea of ​​revoking the labor reform and the revision or end of the spending cap, implemented in 2016, the market scared the fact that Guido Mantega was selected by the PT to write an article for the series that the leaf published with the economic thinking of the candidates.

Lula noticed the smell of burning, given the enormous resistance to his last finance minister, the driver of the crisis under Dilma, and at the last minute he ordered an addendum to the text, saying that it did not reflect the candidacy’s thinking.

The damage, however, was done.

As Bolsonaro and his former market confidence amulet Paulo Guedes (Economia) lost the credit they had in Faria Lima with the multifaceted crisis Brazil faces, Doria believes he can capitalize on support in this niche if he demarcates his differences with the PT.

A test drive of this was made during a tour of New York at the end of last year with major investors, in which he was accompanied by Meirelles and the speech that the spending ceiling was under fire because it was poorly managed by Bolsonaro.

Of other pre-candidates, such as Sergio Moro (Podemos), little is known at this point beyond the widespread criticism of the ceiling.

According to a toucan strategist, the idea is to try to win this starting public. What impact this has on voting intent, of course, is uncertain. The toucan skates below 5%, despite ruling the most powerful state in the Federation.