Brazil’s Finance Minister Fernando Haddad confirmed on Thursday (Dec. 18) that he intends to leave the government in February. At a coffee meeting with journalists on Thursday (18), he stated he intends to collaborate with President Luiz Inácio Lula da Silva’s reelection campaign in 2026 and that this would be incompatible with his current role.

Under Brazilian electoral law, ministers running in the 2026 elections have until April 3 of next year to leave office. Haddad, however, said he intends to leave earlier to give the next occupant time to prepare measures typical of the economic team at the beginning of each year.

Notícias relacionadas:

• Brazil’s finance minister expects $10B for forest protection fund.

The minister would like his successor to prepare the first edition of the 2026 bimonthly revenue and expenditure report, a document that informs the execution of the budget, in March. He would also like to leave the 2027 budget guidelines bill to the future minister, which must be sent to Congress by April 15 of next year.

Haddad said he has already communicated his desire to President Lula and did not respond when asked if he intends to run for office next year.

“First, I expressed my desire to collaborate with President Lula’s campaign. And that is incompatible with the requirements of the Finance Ministry. There is no way to collaborate with the [2026 election] campaign while serving as finance minister,” Haddad said.

“So it was in this sense that I spoke with the president, saying that if my request is granted in some way – so be a campaign collaborator in his bid for reelection – a change of leadership here would be important,” added the minister.

Haddad pointed out that he waited for the approval of the 2026 budget guidelines bill at the beginning of the month as well as the bill reducing tax incentives, approved on Wednesday (17) in the Senate, to formally communicate his decision.

“I was really careful in talking about my future after the [budget guidelines bill] was approved and after the measures needed to make sure the budget was consistent with the [bill] were approved. I was always worried that the [bill] and the budget had to be internally consistent so that the goals could be met,” he said.

The minister, who was formerly mayor of São Paulo, gave no clues about a possible candidacy in 2026. He only reported that President Lula told him he would respect the decision that “Haddad made or will make.”

A possible delay in signing the free trade agreement between Mercosur and the European Union (EU) may enable the conclusion of the treaty that has been under negotiation for more than two decades, said Finance Minister Fernando Haddad on Thursday (Dec. 18). More time is needed to reassure European farmers that they will not be negatively affected, he argued.

“It is worth insisting a little more on my perception. Because, first, there is no harm. There is no harm to Italian and French farmers. There is none,” the minister stated.

Notícias relacionadas:

• Mercosur, Canada resume free trade agreement negotiations.
• Mercosur signs free trade deal with four European countries.

The statement was made during an afternoon coffee break with journalists, before the European Commission officially announced the postponement of the agreement’s signing until January. France and Italy still face resistance from their farmers.

The agreement had been scheduled to be formalized this Saturday (20) during the Mercosur summit in Foz do Iguaçu, Paraná state, but faced resistance from European countries, especially France and Italy, due to pressure from farmers opposed to the pact.

At the meeting with journalists, Haddad said he sent a message to French President Emmanuel Macron, highlighting that the agreement goes beyond the commercial aspect and has geopolitical relevance.

The minister pointed out there is no economic damage to French and Italian farmers, as the negotiated text provides safeguards. He attributed part of the resistance to the political exploitation of internal sensitivities. “This does not correspond to the content of the agreement,” he said. Haddad said that if Europeans need “a little time” to clarify the issue to the public, “it is worth waiting.”

Meloni

Earlier, President Luiz Inácio Lula da Silva said he had spoken by phone with Italian Prime Minister Giorgia Meloni. According to Lula, she is not against the agreement, but faces internal political difficulties and has asked for up to a month to convince Italian farmers. “She asked for patience for a week, ten days, a month at most,” said the president.

Negotiated for over two decades, the Mercosur–EU agreement would create one of the largest free trade areas in the world – bringing together some 722 million consumers and a combined GDP of approximately USD 22 trillion.