He was elected to the Brazilian Senate from the State of Sao Paulo in 1986 and two years later helped in founding the Social Democratic Party. He later served from 1992 to 1993 as Minister for Foreign Affairs. He became Minister for Economy in 1993 and was credited with successfully controlling inflation and turning the troubled Brazilian economy around. He was elected President in 1994 and soon managed to reduce problems in the economy and to attract foreign investments to Brazil.