From The Rio Times · Iolanda Fonseca · · 3m
Lula Government News, Approval and Policy Tracker
Lula's government pushes work week reform and debt relief as runoff election nears.
In brief
Lula's government pushes work week reform and debt relief as runoff election nears. Brazil's Lula government implemented a shorter work week and debt relief for micro-entrepreneurs ahead of a presidential runoff election with Flávio Bolsonaro. Originally reported by The Rio Times.
Lula's Third Term
President Luiz Inácio Lula da Silva's third term runs until 5 January 2027, with a runoff against Senator Flávio Bolsonaro on 25 October 2026.
Work Week Amendment
Congress promulgated the constitutional amendment ending the six-day work week, with a five-day schedule starting in 60 days and 40 hours in 12 months.
Micro-Entrepreneur Debt Relief
The Senate approved debt relief for 3.6 million micro-entrepreneurs worth R$12.6 billion (US$2.5 billion) if they keep paying contributions for six months.
Public Security Amendment
The Senate pulled the public security amendment (PEC 18/2025) after senators filed amendments to lower the age of criminal responsibility.
Approval Polls
A Quaest poll found 45% of Brazilians approve of Lula's government and 48% disapprove, with Flávio Bolsonaro at 46% and Lula at 44% in the runoff.
US Terrorist Designation
The United States treats two Brazilian gangs as foreign terrorist organizations effective 5 June 2026, following Brazil's government efforts to avoid the label.
Senate Leadership
Senate President Davi Alcolumbre sets the Senate agenda, while Chamber Speaker Hugo Motta controls which bills reach a vote among deputies.
Finance Minister
Dário Durigan has led Brazil's Finance Ministry since 20 March 2026, following Fernando Haddad's departure.
Runoff Election
The presidential runoff between Lula and Flávio Bolsonaro occurs on 25 October 2026, with the winner taking office on 5 January 2027.
Prediction Markets
Prediction markets show Lula with 23.5% to win the presidency and Flávio Bolsonaro with 76.2%.
Supreme Court Vacancy
The Supreme Court seat has been vacant since October 2025 after Lula's nominee Jorge Messias was rejected by the Senate 42 to 34 on 29 April 2026.
Inflation Forecast
Brazil's mid-month inflation is forecast at 0.4% for the month and 4.6% over twelve months, down from 0.7% and 4.47%.
Central Bank Rate Decision
The central bank's rate decision follows on Wednesday 4 November, with the security amendment and Supreme Court nominee as open Senate items.
US Market Impact
Brazilian stocks fell 13.9% after Lula's win, with the real sinking 8% and country risk jumping.
What Happens Next
Lula must sign the micro-entrepreneur debt bill and decide on the security amendment before the runoff election on 25 October 2026.
The bottom line
Brazil's Lula government implemented a shorter work week and debt relief for micro-entrepreneurs ahead of a presidential runoff election with Flávio Bolsonaro.
