Brazil's Lula widens election lead with campaign

BRASILIA, Brazil, June 7 (Reuters) Brazilian President Luiz Inacio Lula da Silva has yet to confirm that he is a candidate for re-election in October, but he unmistakably acts like one.

The charismatic former union leader spends much of his time on the road, inaugurating popular public-works projects and giving fiery speeches that tout his government's accomplishments.

This has helped make Lula the favorite for the October vote, despite a nagging corruption scandal involving the ruling Workers' Party which severely dented the president's popularity last year.

''It's a campaign without a candidate. Politically, it's brilliant,'' said Carlos Lopes, a political analyst.

Lula's party plans to launch his candidacy at a convention on June 24, before a June 30 deadline for candidates to declare. By holding campaign-like events now, he can avoid restrictions on incumbents, such as limits on using the presidential plane, after they officially declare, Lopes said.

This week Lula laid the foundation for a BRASILIA, Brazil, June 7 (Reuters) Brazilian President Luiz Inacio Lula da Silva has yet to confirm that he is a candidate for re-election in October, but he unmistakably acts like one.

The charismatic former union leader spends much of his time on the road, inaugurating popular public-works projects and giving fiery speeches that tout his government's accomplishments.

This has helped make Lula the favorite for the October vote, despite a nagging corruption scandal involving the ruling Workers' Party which severely dented the president's popularity last year.

''It's a campaign without a candidate. Politically, it's brilliant,'' said Carlos Lopes, a political analyst.

Lula's party plans to launch his candidacy at a convention on June 24, before a June 30 deadline for candidates to declare. By holding campaign-like events now, he can avoid restrictions on incumbents, such as limits on using the presidential plane, after they officially declare, Lopes said.

This week Lula laid the foundation for a $2 billion railway to help develop the impoverished northeast, from where his family emigrated to Sao Paulo when he was a boy.

He also inaugurated a fish farm near a water reservoir, a highly symbolic move in a region often struck by drought. The idea, Lula said, was his.

''I thought, how is it possible to collect so much water and not use it to generate wealth for the people,'' he said.

Such words carry much weight in the dirt-poor northeast, home to the country's second-largest electorate.

''Water buys a lot of political capital there, not to mention food or fish,'' said Lopes.

Opinion polls show that if the election were held today, Lula would win outright in the first round, defeating former Sao Paulo state Gov. Geraldo Alckmin, of the Brazilian Social Democracy Party.

An Ibope opinion survey on Tuesday showed Lula taking a 2 percentage-point lead in Sao Paulo state, Alckmin's supposed stronghold. Only a month ago, Alckmin was ahead by 9 points.

Pollsters say street violence between police and gangs last month in Sao Paulo helped erode Alckmin's standing.

A year ago a corruption scandal, in which Lula's Workers' Party used illicit campaign funds and allegedly paid off legislators, threatened to engulf his government. The scandal cost him his top political aide and forced Finance Minister Antonio Palocci to resign in March.

Lula's recovery has been fueled by steady economic growth, extensive social welfare programs, as well as Lula's charisma and image as a common man, pollsters say.

Lula also reverted to some of the working-class rhetoric that marked most of his political career before he dropped it for the 2002 campaign in which he won his first term.

''Our adversaries attack us at length on television because they're not used to a president who likes the poor,'' Lula said last week. ''May they learn to lose and learn that a metalworker, who has only fourth-grade education ... can do much more than they can.'' REUTERS SK VC0110 billion railway to help develop the impoverished northeast, from where his family emigrated to Sao Paulo when he was a boy.

He also inaugurated a fish farm near a water reservoir, a highly symbolic move in a region often struck by drought. The idea, Lula said, was his.

''I thought, how is it possible to collect so much water and not use it to generate wealth for the people,'' he said.

Such words carry much weight in the dirt-poor northeast, home to the country's second-largest electorate.

''Water buys a lot of political capital there, not to mention food or fish,'' said Lopes.

Opinion polls show that if the election were held today, Lula would win outright in the first round, defeating former Sao Paulo state Gov. Geraldo Alckmin, of the Brazilian Social Democracy Party.

An Ibope opinion survey on Tuesday showed Lula taking a 2 percentage-point lead in Sao Paulo state, Alckmin's supposed stronghold. Only a month ago, Alckmin was ahead by 9 points.

Pollsters say street violence between police and gangs last month in Sao Paulo helped erode Alckmin's standing.

A year ago a corruption scandal, in which Lula's Workers' Party used illicit campaign funds and allegedly paid off legislators, threatened to engulf his government. The scandal cost him his top political aide and forced Finance Minister Antonio Palocci to resign in March.

Lula's recovery has been fueled by steady economic growth, extensive social welfare programs, as well as Lula's charisma and image as a common man, pollsters say.

Lula also reverted to some of the working-class rhetoric that marked most of his political career before he dropped it for the 2002 campaign in which he won his first term.

''Our adversaries attack us at length on television because they're not used to a president who likes the poor,'' Lula said last week. ''May they learn to lose and learn that a metalworker, who has only fourth-grade education ... can do much more than they can.'' REUTERS SK VC0110