MercoPress. South Atlantic News Agency

Lula announces new ministry for SMEs

I’m proposing the creation of a ministry for people, who need credit and opportunity, Lula said

As part of his efforts to develop over 2 million formal jobs by the end of the year, Brazilian President Luiz Inácio Lula da Silva said Tuesday he would create a ministry to deal with issues linked to small and medium-sized enterprises, assisting those who wish to become entrepreneurs, Agencia Brasil reported. It will be the 38th ministry in Lula’s administration

“But we know there are a lot of people who want no formal contract. Many want to be individual entrepreneurs or collective entrepreneurs. So I’m proposing the creation of a ministry for small and medium-sized enterprises, cooperatives, and individual entrepreneurs, so there’s a specific ministry to take care of these people, who need credit and opportunity,” Lula said during his weekly show Conversa com o Presidente. In the first half of the year, 1,023,540 new jobs were created.

“That’s the role of the state—to create conditions for people to be able to participate,” Lula argued while pointing out that small businesses generate 60 to 70% of Brazil’s formally registered jobs.

During his 2022 election campaign, Lula advocated the creation of this ministry, but when defining his ministerial structure, small businesses were allocated to the Secretariat for Micro and Small Business and Entrepreneurship, under the Ministry of Development, Industry, Trade and Services, headed by vice-President Geraldo Alckmin.

The new SME minister was to be announced shortly, Agencia Brasil also said. Lula needs time to bring the PP (“Progressists”) and Republicanos closer together. The President believes that closer ties would make votes on relevant matters easier. Together, the two parties hold 90 seats in the Lower House.

During the weekend, Minister of Institutional Relations Alexandre Padilha said that Lula was expected to announce a cabinet reshuffle upon returning from his African tour. According to Padilha, these negotiations must be carried out personally by the president. “President Lula makes a point of talking eye-to-eye with the leaders,” he emphasized.

“President Lula will certainly carry out, on his return, a decision he has already taken to accept the request of two federal parties and appoint parliamentarians to the ministry. This is an action to strengthen our team for the second half of the year,” Padilha said.

Federal deputies André Fufuca (PP-MA) and Sílvio Costa Filho (Republicans-PE) are tipped to occupy ministries, Agencia Brasil explained. (Source: Agencia Brasil)