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Home Privatization of Eletrobras may be hampered by the postponement of elections, says mayor

Privatization of Eletrobras may be hampered by the postponement of elections, says mayor

8 July 2020 to 14: 48
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Privatization of Eletrobras
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According to Rodrigo Maia, the postponement of municipal elections to November could make it difficult to privatize Eletrobras

This Tuesday, July 07, the mayor, Rodrigo Maia (DEM/RJ), stated that the approval of the privatization of Eletrobras this year could be impacted by the postponement of the municipal elections to November. According to him, this fact is due to the sensitivity of the issue in states where the company's operations have a lot of influence in the local political debate.

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“How do you privatize Eletrobras? I'm not saying in my case, I'm 100% in favor of it and I've always defended it, but for deputies from Minas Gerais, Pernambuco and other states where the Eletrobras system has a very important weight? I think that the postponement of the election may have harmed this debate”, highlights Maia.

O Senate also publicly manifests resistance to the privatization of Eletrobras in the model presented by the government of Jair Bolsonaro.

The mayor, who participated in an online broadcast promoted by Genial Investimentos, also stated that he does not believe that other weight privatization proposals will be presented.

“The large privatizations that would have a greater impact, such as public banks and Petrobras, I do not see this as an agenda for the Planalto Palace. It could be an agenda from the Ministry of Economy”, he adds.

Eletrobras had its creation proposed in 1954 by then-president Getúlio Vargas and effectively left the drawing board in 1962, under the presidency of João Goulart.

The state-owned company's assets became the subject of studies for privatization in the 90s, during the Fernando Henrique Cardoso government, when a subsidiary in the southern region was sold, but the plans did not go ahead due to political resistance.

More recently, the Ministry of Economics resumed discussions on the privatization of the company.

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