Brazilian Finance Chief May Resign to Pursue Governor Race

Brazil's Finance Minister Fernando Haddad is reportedly planning to leave his position by next week to campaign for governor of São Paulo state. The move comes at the urging of President Lula, who needs stronger political support in the opposition-leaning state ahead of his reelection bid.

Multiple sources in Brazil report that Finance Minister Fernando Haddad will likely resign from his cabinet position within the next week to launch a gubernatorial campaign in São Paulo state, following encouragement from President Luiz Inácio Lula da Silva.

According to four sources who spoke with Reuters on Monday, while Haddad and Lula haven’t held final discussions about the gubernatorial run, the two officials have been in regular contact regarding the potential campaign.

The Brazilian newspaper O Globo first broke the story earlier Monday. Officials at the finance ministry have refused to provide comment on the reports.

Political analysts suggest Lula’s encouragement stems from his need to establish a stronger foothold in São Paulo, a state where right-wing opposition candidates typically perform well. Party officials believe a poor showing in São Paulo could damage the president’s chances for reelection.

The finance minister had originally planned to avoid seeking office this election cycle, instead expressing his desire to help coordinate Lula’s presidential reelection effort.

However, sources indicate that concerns about the president facing a difficult reelection battle have created pressure for Haddad to enter the São Paulo race.

Recent polling data from Datafolha reveals that a hypothetical runoff between President Lula and Senator Flavio Bolsonaro, son of former President Jair Bolsonaro, would essentially result in a dead heat.

Separate Datafolha polling focused on the São Paulo gubernatorial race shows Haddad capturing 31% support in a first-round matchup, trailing incumbent Governor Tarcísio de Freitas at 44%. De Freitas, who has backing from the Bolsonaro political family, previously defeated Haddad in the 2022 election.