MercoPress. South Atlantic News Agency

Lula makes key cabinet reshuffle

Lula is losing popularity and is making moves across the board to bounce back

Brazilian President Luiz Inácio Lula da Silva Monday launched a cabinet reshuffle by appointing Gleisi Hoffmann as Secretary of Institutional Relations in lieu of Alexander Padilha, who returned to the podition of Health Minister he held between 2011 and 2014 under former President Dilma Rousseff. Padilha replaced Nísia Trinidade, whom Lula sacked on Feb. 25.

The former Workers' Party Chairwoman, who resigned that post to assume her new functions, is critical of Finance Minister Fernando Haddad's economic policies and is pushing Lula to resist the influence of the so-called Centrão parties to change course.

In addition, rumors in Brasilia that Guilherme Boulos from the Socialism and Liberty Party (PSOL) might be appointed Secretary General of the Presidency are raising concerns among centrist allies and market stakeholders.

Hence, Lula's administration is feared to adopt a leftward shift to boost back the president's image crisis, after a recent poll showed his disapproval rating at 53%, surpassing his predecessor Jair Bolsonaro. Meanwhile, the popularity of São Paulo Governor Tarcísio Gomes de Freitas keeps soaring.

In this scenario, the Centrão bloc grows impatient as a 45-day deadline for Lula to integrate them into the government nears without updates. Government sources suggest Lula will soon make an announcement but is deliberately taking his time, noting Centrão's mutual dependence on him. Market sources express discomfort with these developments, awaiting clearer signs.

The move also meant Hoffmann left her seat in the Lower House while passing on the PT's helm to Senator Humberto Costa for the next four months.

It is Lula's eigth cabinet reshuffle since taking office on Jan. 1, 2023.

The most notorious ones were the appointment of Macaé Evaristo at Human Rights in September 2024, in place of Silvio Almeida, accused of moral and sexual harassment, and retiring Supreme Federal Court (STF) magistrate Ricardo Lewandowski appointed Justice Minister to substitute Flávio Dino, who was named onto the STF.

In January, Lula fired Paulo Pimenta from the Secretariat of Social Communication and appointed Sidonio Palmeira, a career publicist, in a move to regain public recognition the year before the elections.