Reuters, 12.14.03, 4:24 PM ET
By Sarah Rink
BRASILIA, Brazil, Dec 14 (Reuters) - The Workers' Party of Brazilian President Luiz Inacio Lula da Silva expelled four rebel lawmakers on Sunday, confirming its shift away from a leftist platform and its emrace of centrist, pro-market policies.
The decision one year after Lula took office was made just days after a pension reform measure passed its last hurdle in congress despite opposition from the four radicals who had condemned it as anti-social and a betrayal of the party's traditional principles.
In a secret ballot after a two-day meeting, the Workers' Party (PT) national governing body decided to expel Sen. Heloisa Helena and lower house deputies Joao Batista de Araujo, Joao Fontes and Luciana Genro.
Investors view Lula's pension reform bill, which would slash benefits for retiring public servants and raise the retirement age, as a major step toward putting the government's finances, which include a $250 billion debt, in order.
Lula did not take part in the PT meeting.
Many local and foreign figures, including U.S. author Noam Chomsky, had signed a petition against the expulsion. Several PT members of many years quit the party in protest on Sunday.
But analysts said the expulsions should not dent the high approval ratings of Brazil's first working class president as the nation focuses on economic growth and job creation.
"The government ... now has to show some positive results of its economic policies before June-July, ahead of municipal elections," said David Fleischer, a political analyst with the University of Brasilia. "There is a good chance they'll do it."
He said the expulsions were painful for the party, but necessary to maintain discipline. "The PT really said good-bye to the leftist platform during the election campaign... Now that is formalized," he said.
The new administration has used high interest rates to quash inflation and generated budget surpluses via tough spending controls.
The policy has helped to win over investors who had initially dumped Brazilian assets fearing that Lula would ruin Latin America's largest economy.
But high lending costs have weighed on the economy. Despite modest signs of growth, unemployment remains stubbornly high.
The International Monetary Fund, once the target of fiery criticism by Lula and his party, approved a new loan for Brazil on Friday, lauding his government's economic policy.
Copyright 2003, Reuters News Service