The first days of the new government offer a festival of declarations by ministers.
From reviewing the Social Security Reform to the level of payroll interest, those chosen by President Luiz Inácio Lula da Silva (PT) are positioned without considering the consequences. Even the president of the PT, Gleisi Hoffmann, spoke at a minister’s inauguration, promising to review the Labor Reform.
The market corrects prices, because much of the risk perceived until ownership was not considered real. In the view of operators, the lack of coordination between ministers does not seem to be a good strategy to engage a new government, and the result is the generation of even more instability in the economic scenario.
The power of Fernando Haddad (PT) is diluted by friendly fire and by himself. Last Tuesday (3), he described the interest rate as an “out of place anomaly”, and, although his speech made sense when looking at the Selic level at 13.75% pa, he did not comply with a basic rule: minister da Fazenda does not speak of interest.
Next, his number 2, Gabriel Galípolo, said that it is not possible to control expenses with a trigger for the public debt. There are many economists who agree — even more so because the debate on fiscal policy is not simplistic —, but Galípolo broke another rule of the job: not wasting a word on what he is not going to do, because it suggests the absence of a decision on what to do.
They are not rules written and tabulated in an ironclad clause, but guidelines that value common sense and the promotion of predictability, cohesion and, above all, clarity about the direction of the government.
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.
