Elected in 1994 amidst a hyperinflation crisis, President Fernando Henrique Cardoso of the centre-right Brazilian Social Democratic Party (PSDB) prioritized price stability policies during his term.

[1] Other notable policies pursued by Cardoso included the declaration of Decree 1775,[2] which allowed for increased commercial interest in indigenous lands, and the privatization of publicly-owned companies.

In addition to Lula, Ciro Gomes, a populist who previously served as Governor of Ceará and as Minister of Finance in the conservative government of President Itamar Franco, mounted his own campaign.

Fernando Henrique Cardoso, better known as "FHC", had been inaugurated as president on January 1, 1995, after defeating Luiz Inácio Lula da Silva, his main rival in the 1994 election, in the first round by an advantage of almost 30 million votes.

[1] Although approved in the Congress, the reforms carried by the federal government met strong resistance from the opposition, most notably the Workers' Party, which fiercely criticized the privatization of companies such as Vale do Rio Doce and the constitutional amendment that allowed the re-election of officeholders in the Executive branch.

Despite its political victories, the government needed to impose measures to cool down the domestic demand and help the trade balance, which eventually caused unemployment to grow and made the economy show signs of recession.

Thus, FHC's reelection campaign was based on the idea that the continuity of his government was essential for the stabilization to reach areas other than the economy, such as health, agriculture, employment, education, and public security.

The number could have been as high as fifteen, but the Electoral Justice withdrew the candidacy of impeached President Fernando Collor de Mello,[8] while Oswaldo Souza Oliveira[9] and João Olivar Farias declined to run.

The PT previously refrained from forming coalitions with parties linked to varguista labour unions to guarantee the Central Única dos Trabalhadores' (CUT) independence.