Lula Leaning Toward Meirelles, Padilha for Brazil Finance Chief

(Bloomberg) -- Brazil’s former central bank chief Henrique Meirelles and ex-Health Minister Alexandre Padilha have emerged as two strong candidates to lead the country’s economic team if Luiz Inacio Lula da Silva wins the Oct. 30 runoff vote.

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Both have seen their odds of becoming finance minister climb in recent days and are considered good choices among Lula’s allies, said three people with knowledge of the matter.

Picking Meirelles, who became Brazil’s longest-serving central bank chief under Lula, would be a nod to moderation by the left-wing leader and could ease market concern about his plans, the people said, requesting anonymity because the discussion isn’t public.

Last month, Meirelles’s show of support to his former boss sent markets rallying as investors cheered at the possibility of his return to a key government position. He also served as finance minister under President Michel Temer, introducing the so-called spending cap rule that’s still the country’s main fiscal anchor.

Read More: Lula Widens Lead Over Bolsonaro Days Before Vote, Datafolha Says

Padilha would be more aligned with the Workers’ Party economic thinking. He served as institutional relations minister under Lula and health minister during Dilma Rousseff’s administration, and later became a lawmaker. His experience in congress could help the government approve thorny proposals, such as a replacement for Brazil’s spending cap and an overhaul of the country’s tax system, the people said.

Meirelles and Lula’s campaign declined to comment. Padilha said Lula and his entire team are completely focused on winning the election first.

“Debate about the make-up of teams in any area of government, including the economic team, will only happen after we win this tough election,” Padilha said.

‘Great team’

Lula has repeatedly said he will not appoint cabinet members before winning the election, and that he’s aware of the need to put together a “great economic team.” The former president has avoided the topic behind closed doors as well, even forbidding discussions within his own campaign to minimize speculation around the name, two of the people said.

Read More: Lula Pledges Fiscal, Social Responsibility on Eve of Vote

Lula’s running mate Geraldo Alckmin and Wellington Dias, the former governor of the northeastern state of Piaui, have also been cited as potential picks.

When he was first elected president in 2002, Lula surprised markets by choosing Antonio Palocci, a physician and former mayor of a medium-sized city in the state of Sao Paulo, as his finance minister, the most powerful job in the cabinet.

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