Brazilian media across the political spectrum has reacted optimistically, yet cautiously, to the election of Luiz Inacio Lula da Silva as the country's new president.

The media variously describe his victory as a herald of unprecedented political change, a demonstration of the strength of Brazil's democratic institutions, and a sign of hope for leftist movements all over Latin America.

The electoral honeymoon does not last long

Jornal do Brasil

At the same time, the media stress that Lula must act decisively, even before his January inauguration, to face the enormous challenges, especially to avoid alienating national and international financial markets.

The toughest problems he faces, the media say, are negotiating with the International Monetary Fund (IMF), deciding on an economic team and completing the 2003 budget.

"There is enormous goodwill for Lula," says Rio de Janeiro's influential Jornal do Brasil, "as has rarely been seen in Brazil in the past".

However, it reminds readers that "the electoral honeymoon does not last long."

His party "will commit a grave mistake if it prolongs its celebration at the expense of the exercise of power," the newspaper warns.

Economic reforms

Reflecting the willingness of some media on the right side of political spectrum to give Lula a chance, the influential conservative O Estado de Sao Paulo is optimistic that Lula will successfully negotiate a 2003 budget by 1 January.

It "would be very bad if a new government is launched before having the financial programme in place for the year," it says, but adds: "the chances are that it will be completed by mid-December".

The left-of-centre, largest-circulation daily Folha de Sao Paulo urges Lula to work now with the outgoing government to institute difficult reforms.

It would be wise, the paper says, for Lula and President Fernando Henrique Cardoso to subject the country now to painful therapy, which the market associates with good economic governance.

"The more intense the economic adjustment in the next few months," the paper thinks, "the earlier will Lula's government be able to move to a more positive agenda."

While structural reforms and development projects are important pieces for changes in the economic model promised by Lula's Workers Party (PT), "in the very short term attention will be principally on the relationship between the Brazilian Government and the IMF," says Folha de Sao Paulo.

Foreign policy

"South America will constitute the first focal point of the PT's concerns with the world," the financial daily Valor believes, "and, as part of it, Mercosur (Common Market of the South) and the relations with Argentina, in particular, will be the maximum priorities."

It is hoped that the new government's stance towards the FTAA, Mercosur and relations with the United States will be equally responsible and professional

Gazeta Mercantil

It adds: "South American integration will give the country and its neighbors better conditions for negotiating with the United States on the Free Trade Agreement of the Americas (FTAA)."

The paper underlines the importance of maintaining good relations with Brazil's "inevitable partner", the US, "despite the possible commercial and political disputes".

Sao Paulo-based Gazeta Mercantil agrees.

"It is hoped that the new government's stance towards the FTAA, Mercosur and relations with the United States," it says, "will be equally responsible and professional, without any threat of verbal blunders or rhetorical conflicts."

BBC Monitoring, based in Caversham in southern England, selects and translates information from radio, television, press, news agencies and the internet from 150 countries in more than 70 languages.