Brazil: What challenges await Lula in his fourth term as president?

With less than 4% in it, Brazil's election results point to a country deeply divided. President Lula da Silva clinched re-election on Sunday, but now the job begins of uniting a polarized country. I can assure you that we will change the way this country is governed. I want to tell you that we will make the people participate more in our decisions. What challenges will he face when he takes office on the 5th of January next year? Firstly, Lula will have to work alongside a largely hostile Congress. Legislative elections earlier this month saw Flávio Bolsonaro's Liberal Party win 121 out of 513 seats in the lower house, and more than a third of those in the Senate, making it the most right-wing Congress in Brazil's democratic era. Meanwhile, the public finances will be another key test of the political veteran's fourth presidential term. Public debt in Brazil currently exceeds 80% of GDP, and interest rates are among the highest in the world. According to analysts, Lula will need to make budget cuts to prevent the situation deteriorating into an economic crisis. Measures that could threaten his flagship social programs, that have lifted millions out of poverty. Lula will also be expected to be tough on crime, an issue that emerged as a major concern for voters on the campaign trail. Beyond Brazil's borders, managing relations with the US will be a challenge for the leftist president. Last year, Trump slapped tariffs on Brazil in retaliation for legal proceedings against his ally Jair Bolsonaro. Lula will have to maintain a relationship with Washington without relaxing his anti-imperialist tone, all while the Trump administration increasingly asserts itself in the region.