PSOL anticipates government and will resort to the Supreme Court against the overthrow of the IOF by the Congress

After the National Congress suspend two decrees of President Luiz Inacio Lula da Silva that increased the rates of the Financial Operations Tax (IOF), PSOL announced that it will appeal to the Supreme Court (STF) to annul the decision of the Legislature. Federal Deputy Guilherme Boulos (PSOL-SP) reported the action through social networks, anticipating a debate that took place within the government.

In the Planalto, the evaluation was divided: one wing defended the judicialization, while another warned of the risk of the initiative aggravating the relationship between executive and legislature. One of the government’s vice-leaders in the House, Deputy Pedro Paulo (PSD-RJ) classified the judiciary’s activation as a “worst choice”.

“Certain or wrong, the decision of Congress is legitimate. Judicializing conflicts weakens the institutions,” he said.

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Despite the appeals for moderation, sectors of the base advocate a more direct confrontation. Shortly after the vote that overthrew the decrees, the PT leader in the House, Lindbergh Farias (RJ), criticized the decision, classifying it as unconstitutional.

“They are taking $ 12 billion from the budget, and this demonstrates their fear of Lula. They are guiding everything based on the election.”

With an estimated gap of $ 12 billion, governors warn of the urgent need for alternatives to recompose revenue. Judicialization is seen as a possibility to avoid this impact.

The defeat in Congress was wide: in the House, the project that overthrew the decrees received 383 favorable votes and 98 against. In the Senate, the vote was symbolic, indicating articulation between opposition and part of the base, in a gesture of dissatisfaction with the government.

In an interview, Finance Minister Fernando Haddad said the judicialization is on the radar. The Minister of the Attorney General of the Union (AGU), Jorge Messias, said the decision was not yet taken.

In a statement, AGU reported that “there is no decision made” and that legal issues will be treated technically after evaluation by the economic team. Any legal consequences will be communicated exclusively by the Attorney General.

Behind the scenes, government assistants recognize that the episode exposed the weakening of political articulation, and that judicialization could result in new defeat.