Embattled Brazilian President Dilma Rousseff installed her predecessor Luiz Inacio Lula da Silva at the heart of her government, a high-risk gambit that could rally her party’s base while rattling the country’s economic elite.
The appointment announced by lower house leaders on Wednesday is designed to help shield Lula from a rolling corruption probe and harness his renowned negotiating skills to defend Rousseff from impeachment. Under Brazilian law, only the Supreme Court can probe, indict or try cabinet ministers. He has repeatedly denied any wrongdoing.
Naming the iconic, and controversial, politician to join her cabinet reflects the dire straits Rousseff is in and runs the risk of backfiring, as it ties her fate to that of her mentor’s. It has also spooked investors, who fear she and Lula could resort to economic policies that will help her remain in power but further deteriorate public accounts.
Brazil Energy Insight 
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