Franco considered a presidential run in 1998, but ultimately backed off after constitution changes allowed Cardoso to run again. However, he was elected governor of Minas Gerais in 1998 against the Cardoso-supported incumbent in a landslide, and as soon as he took office, he enacted a moratorium on state debt payments, worsening the national economic crisis. Itamar Franco served in the governor's seat until 2003 (declining to seek reelection and supporting the eventual winning candidate Aécio Neves) and was then the ambassador to Italy, until leaving the position in 2005. During the 2002 presidential election, Franco endorsed Luiz Inácio Lula da Silva, who got elected, even if he, again, declined to run himself.