MercoPress. South Atlantic News Agency

Lula da Silva becomes “more papist than the Pope”

Majority and moderate groupings in Brazil's ruling Workers Party, PT, agreed on a radical platform turn that will give priority to “balanced budgets” and “sustainable economic growth” instead of the original “rupture with the current neo-liberal economic model” with which Lula da Silva, a former firebrand union leader, was elected president in 2002.

The critical turn in PT's history comes as a consequence of President Lula da Silva's strict defence of the current orthodox policy of his administration praised by international bankers and institutions and blasted by Brazilian corporations linked to domestic demand and financing.

The support from the "majority groups" representing 70% of PT means a strong backing for Finance Minister Antonio Palocci who has been under constant attack from within the party for his "continuity" policies. "There's been a strong acknowledgement of serious fiscal policies. I came to the party's meeting as a member and militant to dialogue. I perceived that "friendly fire" was now more "friendly", than fire", admitted Mr. Palocci.

Cabinet Chief Jose Dirceu who until a few months ago had differences with Mr. Palocci applauded the changes and forecasted that in 2005 the Brazilian economy would expand 5%, a 1,5 points increase over original estimates.

The updating of the ruling PT's program, in spite of a 30% non acceptance in the ruling party government posts, is considered vital for the coming 2006 presidential elections when President Lula da Silva is expected to campaign for his re election.

PT chairman Jose Genoino said that in spite of the reforms introduced, PT is still a left wing party, "inheritor of the best traditions of democratic socialism; a left wing party fighting for fairness and better wealth distribution".

The original PT government platform drafted in December 2001 proposes a "rupture with the oppressive neo-liberal economic model" and turning the back on the International Monetary Fund and other international financial institutions.

The new document which still has to be discussed in a full meeting of PT on time for the coming 2006 presidential election, states that the party "has learnt that mismanagement of the economy and public finances always is crueller for the poor. A stable, solid and dynamic economy is an essential condition for growth and social justice".

Further on it mentions that reducing public debt and interest rates are essential, however "it's a process that needs to be patiently built, combined with fiscal equilibrium, public reform and efficient public investment, in such a way that private investment intensifies helping to accelerate the expansion of the economy".

In a recent interview British political analyst specialized in Latinamerica described Mr. Lula da Silva as "more papist than the Pope" in economic affairs.