Brazilian presidential candidate Flávio Bolsonaro said on October 6 that his campaign had opened talks with the Republicanos party to broaden support for the runoff. São Paulo governor Tarcísio de Freitas was helping coordinate the effort. Bolsonaro also outlined proposals affecting criminal penalties, working hours and business taxes.

Bolsonaro builds alliances

Ronaldo Caiado, the former governor of the Brazilian state of Goiás, endorsed Bolsonaro. The senator and presidential candidate said he might appoint Caiado as a minister if elected.

Bolsonaro said he wanted to build a broader political alliance for the second round. Representatives involved in the discussions would consult their parties’ lawmakers before reaching a joint decision, he said.

Constitutional changes and work proposals

Speaking after Caiado’s endorsement, Bolsonaro said he would use a congressional majority to amend Brazil’s Constitution if elected. He presented the proposed changes as a way to make the country more democratic. He did not specify which constitutional amendments he would seek.

According to SBT News, Bolsonaro said a majority would allow him to secure right-aligned leaders in both congressional chambers. Those leaders would allow his proposals to move through Congress, he said.

He again backed lowering the age of criminal responsibility and chemical castration for perpetrators of violence against women. He also proposed classifying criminal organizations as terrorist groups, with prison sentences reaching up to 80 years.

On employment, Bolsonaro defended replacing the current 6×1 work schedule with a system allowing workers to choose their hours. He cited mothers choosing shorter hours and receiving vouchers for private childcare when public daycare places were unavailable.

Bolsonaro criticized President Luiz Inácio Lula da Silva for discussing the work schedule during the runoff campaign. He also promised tax cuts, lower payroll taxation and less bureaucracy for businesses. He said legal uncertainty was hindering the Lula government’s efforts to attract investment.

Markets react to the first round

The dollar closed below five Brazilian reais on October 6 for the first time since May. Two Brazilian news outlets reported slightly different closing rates: 4.975 and 4.9756 reais per dollar.

The Ibovespa stock index fell about 0.5% but remained above 200,000 points, according to a Brazilian financial report. That followed a rise of about 7.9% in the previous session.

The report linked the real’s gains to investors’ assessment of the first-round election result. Investors viewed a possible change of government as an opportunity to lower the risk premium on Brazilian assets and create room for fiscal adjustment.