After a month and a half of the new government, the debate of the day is no longer attacks on the Central Bank (BC) and interest rates. The need to discuss what really matters for the country’s governance prevailed: the reforms.
Fernando Haddad (PT), Minister of Finance, took the change in the inflation target out of the way when he announced that the proposal for a new fiscal framework will now be presented in March. The anticipation was well received, because it hits two targets at once.
The first, and most obvious, is to approve the replacement of the spending cap — the most urgent task for the new government to establish expectations for the balance of accounts and public debt.
The second has a political basis: to deflate Aloizio Mercadante’s attempt to be a protagonist in the fiscal debate, given that the president of the National Bank for Economic and Social Development (BNDES) has interfered with the minister’s harvest as if he doesn’t want anything.
As a bonus, Haddad’s response also isolates the PT’s outcry against BC and returns Mercadante to his square. And, more importantly, it shows that Haddad still has influence over President Luiz Inácio Lula da Silva (PT), after all, he has been in office for 45 days.
If no noisy deviations appear in the next few days, the debate around the reforms may prevail over the bravado for the pens in the economy.
In this Thursday’s episode (16), CNN Money also talks about the National Congress’ willingness to help the government — as long as nothing too “radical” appears in the proposals, as pointed out by Arthur Lira (Podemos), president of the Chamber of Deputies. Deputies — and expectations for the meeting of the National Monetary Council (CMN), the first of Lula’s third term.
Presented by Thais Heredia, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
