|
 Neves, a centrist senator who had been widely written off until a
few days before Sunday's first-round vote, rode a late surge in
support to grab second place with 33.6 percent of the vote.
Rousseff led with 41.6 percent and they now face each other in an
Oct. 26 runoff to decide Brazil's most unpredictable race in
decades.
Rousseff remains a slight favorite as she has strong support among
Brazil's poor but Neves is within striking distance and is expected
to pick up most of the 21 percent of voters who backed the
third-placed finisher, environmentalist Marina Silva.
Neves reached out to Silva on Monday, stressing the similarities of
their proposals to reduce the size of government and free up private
enterprise.
He said he was the candidate of change, a slogan dear to Silva who
sought to end the horse-trading of Brazilian politics.
He also fired back at Rousseff, who said he represents the "ghosts
of the past," a reference to an austerity drive, layoffs and the
privatization of state assets when his Brazilian Social Democracy
Party, or PSDB, last held power from 1995-2002.
 "The truth is Brazilians are far more concerned with the monsters of
the present: high inflation, recession and corruption," Neves said.
Brazil's main stock index <.BVSP> jumped 4.72 percent on Monday, its
biggest one-day rise in more than three years, as investors were
cheered by Neves' strong showing. The real currency <BRL=> closed
1.46 percent stronger.
Latin America's largest economy has been stuck in a rut for nearly
four years under Rousseff, and most of Brazil's business community
and Wall Street investors have made no secret of their desire for
change.
Rousseff returned to the offensive on Monday in a campaign that is
increasingly being drawn along class lines.
"Investors don't win elections in Brazil. They are won with the
votes of the Brazilian people," she told reporters.
She also attacked Neves' top economic policy advisor, former central
bank president Arminio Fraga, saying that inflation went beyond the
official target on his watch and interest rates hit 45 percent.
WOOING SILVA
Both Rousseff and Neves will try to win over Silva's supporters.
She had soared in opinion polls earlier in the race and looked on
track to win the election in a runoff. Her support crumbled in the
homestretch amid questions about her shifting views on major issues,
but she is admired by many voters and could still help swing the
election with an endorsement.
Top Rousseff aide Gilberto Carvalho said on Sunday night that he had
already spoken to the head of Silva's Brazilian Socialist Party,
Roberto Amaral, to ask for their support.
 "He asked for calm and more time to talk with the party," Carvalho
told reporters. Silva called both Rousseff and Neves on Monday but they said they
did not raise the issue of her endorsement in the calls.
Silva's party will meet on Wednesday and a decision on whether to
formally back a candidate in the runoff is expected by Thursday,
party leaders said.
Most observers believe Rousseff has very little chance of winning
formal backing from Silva, after unleashing a barrage of negative
ads that contributed to her collapse.
Instead, her best hope may be for Silva to stay neutral, as she did
after finishing third in the 2010 race, which could allow Rousseff
to peel away her more left-leaning supporters.
[to top of second column] |
The Silva and Neves camps shared broadly similar market-friendly
platforms and Silva's campaign chief, Walter Feldman, is a former
PSDB leader with enduring ties to the party. BATTLE BETWEEN
VISIONS
The runoff will be a battle between opposing visions for Brazil: the
state-led capitalism of the ruling Workers' Party, and the
market-friendly policies promised by Neves and the PSDB.
The two parties are arch-rivals and between them they have run
Brazil for the last 20 years. Rousseff and her party accuse the PSDB
of favoring the rich, a potent accusation in a country where more
than half of voters live in households earning less than $1,000 a
month.
Polls taken prior to Sunday showed Rousseff would beat Neves by as
much as 8 percentage points in a runoff, although Neves' dramatic
turnaround gives him clear momentum.
That could be important in a race in which most voters have told
pollsters they want change from the government but many also have
misgivings about kicking Rousseff out of power.
The first opinion polls for the runoff are expected on Thursday.
They could face greater scrutiny failed to project the scale of
Neves' late first-round surge.
As recently as 10 days ago, polls showed him stuck in third place
and trailing Silva by 9 percentage points.
But when Silva's lack of party support and reputation for
unpredictable decisions scared away many voters at the last minute,
Neves' consistent pro-business message and calm, presidential air
won them over.
 Expectations of a Rousseff victory had in recent days battered
stocks and driven the currency to a five-year low. Although markets
snapped back on Monday, they are likely to be volatile over the next
three weeks. Despite falling investment, weak consumer confidence and a loss of
competitiveness by Brazilian manufacturers, Rousseff and her
supporters blame the economic woes on international instability, not
her policies. Unemployment has remained near historic lows, and
wages have been steady.
To win, Neves may have to distance himself from the PSDB's last time
in government, a period that saw important pro-market reforms but is
remembered by most voters for high unemployment and painful budget
cuts.
He must also convince voters that his promise to jumpstart the
economy won't come at the expense of social programs, especially a
popular monthly stipend that low-income families receive in exchange
for keeping their children in schools.
(Additional reporting by Eduardo Simoes, Jeferson Ribeiro and
Caroline Stauffer; Editing by Todd Benson and Kieran Murray)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
