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09/12/2010 | Brazil's Rousseff picks 5 ministers from top party

Reuters Staff

Energy minister to oversee oil industry overhaul. Social Security minister to face rising deficit. Party support crucial for Rousseff's reforms

 

Brazilian President-elect Dilma Rousseff on Wednesday chose five Cabinet members from her most important coalition partner in an effort to secure congressional support for her government.

The ministers are from the centrist PMDB party, the largest ally in the 10-party coalition that will form Rousseff's new government from Jan. 1.

Rousseff, who was elected with an ample majority on Oct. 31, last month appointed a market-friendly economic team that surprised investors by promising deep budget cuts.

Finance Minister Guido Mantega, who will remain in office, has told Reuters that Rousseff requested a "heavy hand" on budget spending and would make at least 20 billion reais ($11.7 billion) in cuts. [ID:nN24293981]

Senator Edison Lobao, who was energy minister until April, will return to the same job, according to a statement issued by Rousseff's office.

Lobao will oversee the implementation of a legal overhaul of the oil industry that has been approved by Congress [ID:nN01198381]. He will also lead a restructuring of the mining sector, which would heighten regulatory oversight and restrict exploration concessions [ID:nN21360146].

Agriculture Minister Wagner Rossi will remain in his current post. He is one of several well-known names from the outgoing administration that Rousseff has picked in a sign of policy continuity.

Senator Garibaldi Alves will head the Social Security Ministry, where he will have to tackle a rising deficit of the country's costly pension system.

The PMDB is the largest party in the Senate and the second-largest force in the Chamber of Deputies, the lower house of Congress.

Its support is crucial to ensure Rousseff the 60 percent majority necessary to approve constitutional reforms, which she may need for her proposed overhaul of an unwieldy tax system.

Two PMDB legislators from the Chamber of Deputies, Pedro Novais and Moreira Franco, will take the Tourism and Strategic Affairs portfolios, respectively.

Last week Rousseff appointed her presidential staff and justice minister [ID:nN0381387]. (Reporting by Jeferson Ribeiro and Bruno Peres; Writing by Raymond Colitt; Editing by Xavier

Reuters (Estados Unidos)

 


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