Lula Accepts Chief of Cabinet Position in Rousseff's Government

Former Brazilian President Luiz Inacio Lula da Silva will take over as chief of staff for his successor Dilma Rousseff, potentially marking a shift away from austerity measures in efforts to stimulate the struggling economy.

The head of the government coalition in the lower house of Congress, Jose Guimaraes, confirmed the appointment on Twitter after a meeting of Rousseff, Lula and senior ministers on Wednesday morning.

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“Minister (Jaques) Wagner on his birthday shows greatness and detachment by leaving as chief of staff! Lula is the new minister!” Mr. Guimaraes tweeted.

Experts speculate that Lula’s return to government may mark a shift in economic policy, as the former president has openly criticized austerity efforts and called for more public spending to end Brazil's worst recession in decades.

Meanwhile, the announcement takes place as Brazil's central bank chief Alexandre Tombini may resign if the return of former President Lula to the Cabinet brings major economic policy changes, a senior source within the government's economic team said Wednesday.

The new position also comes after federal Judge Sergio Moro was given jurisdiction to rule over money laundering charges presented against Lula.

Accepting a cabinet position gives Lula immunity from Moro, though not from Brazil's Supreme Court.

Lula has consistently denied any wrongdoing and argues that the allegations are politically motivated.

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