Brazil's government is accelerating its key privatization plans. After approving the sale of Eletrobras, the region's largest electricity company, Bolsonaro is now planning to privatize the Country's post service, a strategic sector in terms of logistics.

The bill entered the Chamber of Deputies and will be conducted by the president of the legislative body and ally of Jair Bolsonaro, Arthur Lira. The special secretary of Destatization, Divestment and Markets of the Ministry of Economy, Diogo Mac Cord, confirmed the initiative in an interview with O Globo Newspaper and said that "the government will auction 100% of the company."

The company has several stakeholders such as multinationals Mercado Libre and Amazon due to the record growth that e-commerce had during the pandemic.

Eletrobras privatization threatens Bolsonaro's election with price hikes amid campaign

LPO spoke with Paulão, deputy of the Workers' Party, who anticipated his rejection of the project and said that "this will impact the country, because today we have a public company with a territorial capillarity that reaches all municipalities, from the strongest to the weakest, from the social and economic point of view."

"Now, with the privatization, investments will be greater in the municipalities with the most profitability, which will surely suffer a tariff increase," Paulão added.

The privatization of the Post Office has several interested stakeholders such as multinationals Mercado Libre and Amazon due to the record growth that e-commerce had during the pandemic.

Bolsonaro suffers a phenomenal drop in his political image and all the polls have indicated he will lose against Lula in the first round, while some anticipate a large difference between them. However, in recent months, he has been determined to move forward with the privatization agenda promoted by his economy minister, Paulo Guedes.

Deputy Paulão (PT).

According to the deputy, "the objective of both Bolsonaro and Guedes is to fulfill their commitments to the market and the financial system, and that is why they want to eliminate all public companies."

"Bolsonaro wants to privatize as much as he can, with the weight shifting to one side only. They are lackeys of the financial system who see public enterprises as an issue for the construction of the liberal state."

They are lackeys of the financial system who see public enterprises as an issue for the construction of the liberal state.

Arthur Lira has already announced that the bill for the privatization of a company, which is on the radar of Mercado Libre, and as U.S. firms Federal Express and Amazon, should be voted before August 15.

Bolsonaro's strategy is to continue counting on market trust, which, as reported earlier by LPO, does not rule out a dialogue with Lula, and engaging in center-right blocs for a common economic agenda that takes away the possibility of supporting an impeachment trial as a result of the investigations against the President for having allowed the overpricing of Covaxin doses, as well as bribes related with the Astrazeneca vaccine.