News Analysis: Brazilian ex-president's cabinet job may help incumbent out of trouble

Brazilian President Dilma Rousseff's appointment of her predecessor, Luiz Inacio Lula da Silva, as her chief of staff may help save her troubled government and revitalize Brazil's sluggish economy, experts say.

With a government facing strong opposition, a coalition on the verge of collapse and an economy mired in its worst recession in decades, Rousseff hopes to gain back some support from allied parties and serve out her term, which expires in December 2018.

Experts say the government puts its stakes on restructuring the political alliance and increasing people's confidence in economic recovery.

Lula's participation in Rousseff's cabinet could improve the political climate for the government and its proposals could gain more support in Congress, said Maria do Socorro Braga, a professor with the Federal University of Sao Carlos.

Braga said Lula is very capable of mobilizing political resources and Rousseff hopes he would inject vitality in her government.

"The arrival of (former) President Lula da Silva to this cabinet is important and relevant. First of all, he brings invaluable political experience. Second, he has deep knowledge of the country's needs and a commitment to the strategic policies we need to take," Rousseff told a press conference Wednesday.

She said her predecessor will seek to bring financial stability to Brazil, "a compromise...which he acted upon during the eight years of his government."

Tasked to keep all policy matters on track, the chief of staff holds the most important position in the Brazilian cabinet.

Lula will replace Jaques Wagner, who will now lead Rousseff's group of political advisors. He will also be responsible for coordinating the Economic and Social Development Council and for heading up relations with Congress.

The former president's appointment came amid mounting legal worries for him as he faces charges of money laundering and obstruction of justice.

Last week, a Sao Paulo judge handed over Lula's case to Federal Judge Sergio Moro, who is overseeing the sweeping corruption investigation into Petrobras, the state-controlled oil company where Rousseff held a seat on the board of directors years ago.

However, the position of chief of staff will grant Lula immunity from all prosecution, except from the Supreme Court, which is seen as favoring the ruling Workers' Party.

The opposition is afraid of Lula's return to the foremost position of the political circle, which they have been seeking to ruin at any cost, said Fabiano Santos from the University of the State of Rio de Janeiro.

"They (The opposition) feel insecure to face Lula. The latest polls showed nobody seemed to have benefited from the troubled politics," Santos said.

On the economic front, Lula's participation in the cabinet may give the government a relief from the economic woes, but whether it can change the negative scenario remains unknown, according to the experts.

Lula's popularity was formed in an era of prosperity the country experienced when he was in office, but the current situation presents great challenges, said Aarao Reis Filho, professor of the Fluminense Federal University.

Lula's participation in Rousseff's cabinet and the rallies to support the government scheduled for Friday will give the government a relief, but what economic course the government will take is not clear, Reis Filho said.

"Rousseff was in peril in December but the Supreme Court's decision saved her," when the court ruled then that the impeachment proceedings against her be continued but the Senate should review any decision made by the Chamber of Deputies and hold its own decisive vote, the professor said.

"Now it seems the president is in trouble again, but things can change. What is important is not whether her government will survive but why (it will survive)," he said. Endi