MercoPress. South Atlantic News Agency

Strong approval for President Lula but runoff in Sao Paulo.

Brazilian president Luiz Inacio Lula da Silva's Workers Party seems to have achieved significant advances in this Sunday's municipal elections, but will be forced to a runoff next October 31 to keep control of the country's most important city Sao Paulo.

The impact of this Sunday voting could be crucial for the 2006 presidential election and Mr. Lula da Silva's ambition of a second four year term.

The Workers' Party (PT) held 187 of Brazil's 5,562 city hall offices prior to the election, a number it hopes to boost to 500, including seven state capitals.

Mr. Lula da Silva party managed to hold the city of Belo Horizonte, capital of Minas Gerais and the country third largest, and the capital of the north-eastern state of Pernambuco, Recife, with 54% of the ballots cast.

Almost 120 million Brazilians voted this Sunday to elect 5,562 mayors and 52,802 legislative councillors. In the 68 cities with over 200,000 inhabitants a runoff will be called next October 31 if no candidate manages 50% of the votes cast plus one.

In Aracaju, capital of the Amazonia state of Sergipe, the Workers Party candidate was re-elected with a landslide and in the capital of Tocantins, Palmas, a runoff was just avoided.

Mr. Lula da Silva's party suffered an expected and resounding defeat in Rio de Janeiro, where Mayor Cesar Maia will face Liberal Party candidate Marcelo Crivella in a runoff. The Workers Party candidate, Jorge Bittar, came in fourth place with 8%.

However the most nerve racking for Mr. Lula da Silva and his party is the race in Sao Paulo where apparently there will be a runoff between the ruling mayor Marta Suplicy and former Health minister Jose Serra of the opposition Brazilian Social Democracy Party, who in 2002 lost the presidential election to Mr. Lula da Silva.

Mr. Serra apparently did much better than expected and has a great chance of winning the second round at the end of October.

Sao Paulo a city of some 20 million people and 7,7 million voters, the heart of Brazil's industry, could be key to the 2006 presidential election. The Workers Party is already working to forge a political alliance to assure a win in the runoff.

Sao Paulo is followed in size by Rio de Janeiro, Belo Horizonte, Porto Alegre and Recife.

Porto Alegre in Rio Grande do Sul, long a bastion of support for the Workers' Party, will be decided in a runoff since none of the candidates was able to muster more than 50% of the vote.