MEDIA REACTION: WESTERN HEMISPHERE: BRAZIL, PRESIDENTIAL

UNCLAS SAO PAULO 001155

SIPDIS

SIPDIS

STATE INR/R/MR; IIP/R/MR; WHA/PD

DEPT PASS USTR

USDOC 4322/MAC/OLAC/JAFEE

E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: WESTERN HEMISPHERE: BRAZIL, PRESIDENTIAL
RUN-OFF OCT 29; SAO PAULO



1. "Lula Reelected"

Liberal, largest national circulation daily Folha de S. Paulo
(10/30) editorialized: "Reelected with more than 60 percent of valid
votes, President Lula da Silva now has before him a much more
diverse political horizon than that of 2002.... Lula is far from the
aura of social and ethical renovation which his voters imagined in
2002, but his reelection is now also dissociated from the threats of
economic irresponsibility and political turbulence projected by his
adversaries' discourse four years ago.... The game of sustaining
parliamentary power, which led the government into so many shameful
disasters, will have to be played again. Any discourse on
comprehensive political reforms capable of providing more
transparency and functionality to republican institutions will
bitterly contrast with the predominance of old-fashioned politics
and absence of ideological compromises among those who hold the real
power."


2. "The Cost Of An Electoral Fraud"

The lead editorial in center-right O Estado de S. Paulo (10/30)
maintained: "After a campaign in which the President triumphantly
and falsely addressed the voters about the economic situation, and
the challenger did not dare to propose what must be done to prevent
the economy from deteriorating, the time of truth has come.... Given
the dramatic status of Brazil's public finances, the solutions that
sooner or later will have to be adopted to prevent an otherwise
unavoidable explosion of the fiscal crisis will be extremely
painful. And facing the problem has become even more difficult as a
result of the electoral fraud carried out by President Lula....
Productive Brazil has been for too long lethargic. The series of
scandals, the unrestrained use of the administration at service of
the reelection and the consequent radicalization of the political
climate have already cost Brazil dearly.... As the electoral battle
is over, the parties must look for civilized coexistence so as to
provide the nation with the necessary tools to overcome the
political crisis and foster growth. If harmony and public spirit do
not prevail, Brazil will be condemned to backwardness."


3. "Another Chance To Resume Growth"

The editorial in business-oriented Valor Economico (10/30) remarked:
"Reelected with a large margin of votes over the opposition
candidate, President Lula regained the necessary political
conditions to carry out in his second term the changes Brazil
expects from him.... Lula now has sufficient power to try to lead
Brazil to the path of growth that he could not find in his first
mandate. The President will try to create a broader range of
alliances, something that may ensure him greater support in the
Congress, but not necessarily a successful administration. It is up
to him and his staff to overcome the main challenge of providing the
public accounts with a long lasting balance to permit the economy a
sustainable growth.... Fiscal balance is the premise so that the tax
burden that suffocates growth and the formalization of the economy
can be cut systematically and generalized. A political agreement
with the main Congressional forces will be able to, supported by the
prestige of the great advantage of votes the President obtained,
conclude the tax reform that is currently stuck in the Congress."

McMullen