Lula must overturn the legislation on state-owned companies through a provisional measure, predicts the political analysis consultancy Eurasia in a report this Monday (12).
“President-elect Lula is expected to edit a provisional measure in his first days in office to change the legislation on state-owned companies enacted by the Michel Temer government,” says the document.
The consultancy emphasizes that the law establishes rigid parameters of governance for public companies, and the PT fiercely criticized it since its creation.
An interim measure would allow the decision to take effect immediately, but would still need the approval of the National Congress within 120 days to prevent it from expiring.
“The repeal of this legislation would significantly facilitate political appointments to state boards. Thus, Lula could promptly appoint Senator Jean Paul Prates as CEO of Petrobras and political appointees for public banks”, says the consultancy.
Eurasia said the move would also help the coalition’s negotiations with the centrist parties, which will require government appointments and guarantees that they will continue to control much of the budget.
“The measure is unlikely to face significant resistance in Congress,” he predicts.
CNN reached out to the elected government transition team, but is still awaiting a response.
*Posted by Ligia Tuon
Source: CNN Brasil
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