The necessary improvement of the mechanisms of control for state intervention in the economy

Abstract

Brazil was governed by dictatorships for long periods in its recent history. The Federal Constitution of 1988 brought various mechanisms to prevent the return of authoritarian regimes and guarantee democratic stability in the country. The principle of separation of Powers, an immutable clause in our constitutional order, is one of such mechanisms. Articles 37, sections XIX and XX, and 173, caput, of the Federal Constitution, require the participation of the Legislative Branch in the decision making of state intervention in the economy, as well as establish requirements for its expansion. The Executive Branch, however, has expanded its presence in the economy without respecting the constitutional commandments, in default of Congress. The expansion of Eletrobras and Petrobras through special purpose companies, as well as BNDES through BNDESPAR and its participation in private companies, without any participation of the Legislative Branch in the process, are examples of this phenomenon. The Supreme Court was called to the debate and has already suspended numerous processes of privatization due to disrespect to the aforementioned constitutional commandments. A final position of Supreme Court´'s full bench is still pending.