André Richter - Reporter for Agência Brasil

The Attorney General of the Union, Jorge Messias, said this Friday (4) that the federal government will demonstrate to the Supreme Federal Court (STF) that the decree issued by President Luiz Inácio Lula da Silva to increase the rates of the Tax on Financial Transactions (IOF) is in accordance with the Constitution.

Messias' statement came after Minister Alexandre de Moraes decided to take the case to conciliation and suspend Lula's decree and the deliberation of the Chamber of Deputies and the Senate that overturned the president's act.

The attorney general stated that he recognizes the proposal for institutional dialogue promoted by the Supreme Court minister.

"The AGU values the proposal for inter-institutional dialogue suggested by the STF, recognizing it as an important space for resolving conflicts. During this opportunity, the Attorney General's Office will demonstrate the full compliance of the presidential decrees with the Constitution, emphasizing their appropriate use in conducting the economic, exchange rate and security policy of the federal executive branch," he said.

In Jorge Messias' assessment, Moraes considered the Union's argument on the separation of powers between the Executive and the Legislative to be"reasonable and plausible".

"The rapporteur minister's vote understands the Union's argument regarding the violation of the principle of separation of powers, as supported by the AGU, as reasonable and plausible. Furthermore, it highlights the need to clarify the doubt raised by the National Congress regarding the possible misuse of the purpose of presidential decrees, especially due to the fiscal nature of the measures," he added.

Decision

Alexandre de Moraes' decision was taken in the action in which the PSOL intends to annul the votes of the Chamber of Deputies and the Senate that overturned the decree issued by President Lula and in the process in which the AGU requested that the decree be considered constitutional.