CNN panel: economists analyze Guilherme Melo’s choice as secretary

This Friday (23rd), Alexandre Schwartsman, economist and former director of international affairs at the Central Bank, Paulo Uebel, former secretary of the Ministry of Economy, and Alessandra Ribeiro, economist and partner at Tendências Consultoria gave their opinion at the CNN Brazil on the paths that the Brazilian economy can follow.

The future Minister of Finance, Fernando Haddad (PT), announced this Thursday (22) four more assistants who will integrate the second echelon of the portfolio.

Tax auditor Rogério Ceron will head the National Treasury, the Federal Revenue will be occupied by the Chief Treasury Attorney of the municipality of São Paulo and lawyer Robinson Barreirinhas; Guilherme Mello, economist and who was ahead of Lula’s campaign, will assume the Secretariat of Economic Policies; and Marcos Barbosa Pinto, former director of the BNDES, will take over the Economic Reforms Secretariat.

Vice-president-elect Geraldo Alckmin, after Lula’s announcement, will assume the Industry and Commerce portfolio in the Lula government. Let’s understand the repercussion of these announcements for the economy, receiving today on CNN Vision

For Schwartsman, with regard to the people closest to Fernando Haddad, they are more technical names, people with public sector experience and, because they worked closely together in the City Hall, it is a relationship of trust.

But, the economist says that in the case of the Secretariat for Economic Policy, it is more critical. “It is not an eminently technical staff, it should be a person capable of formulating economic policy. I know that Guilherme Melo was responsible for formulating the economic program, and if we read what is being proposed, it is an absolutely disastrous deal”.

Ubel also highlights the choice of Gilherme Melo. For him, the chosen secretary brings a backward view, which is not supported by the best international practices, a developmentalist, protectionist stance and against reforms. “He has already spoken out against this reform [trabalhista] and this brings great insecurity to the private, productive sector and also to the financial market”, he believes.

Ribeiro confirms that the assessment of economists on the CNN Panel is very close, as the opinion in relation to Guilherme de Melo is worrying. “Thinking about spending in the very short term, you can give some boost to economic activity. But the fact is that with the worsening of financial conditions, risk perception, interest rates rising, the exchange rate depreciating, the Central Bank having to react, we know how this account is going to be ”, he highlights.