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INTERVIEW-Brazil presidential contender Gomes would reverse privatizations

Fri, 16th Mar 2018 18:32

By Pedro Fonseca and Rodrigo Viga Gaier

RIO DE JANEIRO, March 16 (Reuters) - The most likely leftistcontender in Brazil's presidential race, Ciro Gomes, is warninginvestors to hold off buying state assets in the energy sectorbecause he would expropriate them if he wins in October.

That includes rights to oil fields granted last year and alegislative push to dilute state control of Centrais EletricasBrasileiras SA, or Eletrobras, the country's largestpower utility.

"What I want to say is: 'Don't buy. Wait a bit,'" Gomes saidin an interview on Thursday in which the former governor ofCeara state detailed plans to raise taxes on wealthy Brazilians,reduce the country's hefty public debt and change the CentralBank's sole focus on fighting inflation.

Gomes maintains that President Michel Temer is illegitimatebecause he took office in the controversial impeachment ofleftist Dilma Rousseff, arguing that his policies should berevised by the next government elected by the Brazilian people.

Gomes will benefit the most if former President Luiz InacioLula da Silva, Brazil's most influential politician, is barredfrom running due to a corruption conviction.

A Datafolha poll in January showed that if Lula cannot run,Gomes would have 13 percent of voter intentions in a field ledby far-right candidate Jair Bolsonaro with 20 percent.

Gomes expects to at least double his standing if he becomesthe standard bearer of the left and hopes to win the backing ofLula's Workers Party, which could provide his running mate, hesaid.

While he would roll back many of Temer's market-friendlypolicies, Gomes said he was no "juvenile leftist."

Oil companies that won concessions last year in Brazil'spre-salt offshore region, including Royal Dutch Shell Plc, Exxon Mobil Corp, Statoil ASA andTotal SA, would be compensated when the state revokestheir contracts, Gomes said.

Even though he would redirect public spending to boost theeconomy and reduce social inequality, Gomes vowed he would befiscally responsible.

"I will pay the debt," he said, adding that it would takeseveral governments to do that, but he would start the trend.

If elected, he plans to levy taxes on profits and dividends,while increasing inheritance taxes.

Gomes thinks his main rival will be center-right candidateGeraldo Alckmin, the governor of Sao Paulo. However, Gomes saidhe would relish the chance to face Bolsonaro, a pro-gun,anti-gay former army captain whom he called a "right-wingscarecrow."(Writing and additional reporting by Anthony BoadleEditing by Susan Thomas)

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