Brazil's President Luiz Inacio Lula da Silva could implement unpopular economic measures in his final two months to ensure a smoother start for his elected successor in January, Folha de Sao Paulo said on Tuesday. The daily newspaper said Lula and President-elect Dilma Rousseff, also from the Workers' Party, had discussed fiscal and monetary adjustments, which they saw as necessary and which would help the next government gradually bring down high interest rates.
By implementing the least popular measures now, Lula could take the heat off Rousseff, who faces the challenge of tackling a strong currency, lowering one of the world's highest interest rates and reining in public spending. Folha did not say how it obtained the information. Rousseff won Brazil's presidential election on Sunday by a wide margin over rival Jose Serra and will succeed Lula, who is nearing the end of his second term in office.