Quoted to be the new Minister of Finance, Fernando Haddad spoke for half an hour to the main bankers in Brazil this Friday. He defended dialogue, tried to create bridges with the public and made it clear that the new government wants top priority for tax reform starting in 2023. He also wants to improve the management of public spending.
The audience listened carefully, and even agreed on the priorities. But many people left the event promoted by Febraban, the Brazilian Federation of Banks, frustrated.
It is as if Haddad had detailed the second chapter of a book, while the economic world really wants to know how the first chapter will end. It is there where it is written how the new government will pay the electoral promises, how many billions will be needed outside the cap and how the fiscal issues will be treated.
When asked about the PEC that is being processed in the National Congress, Haddad did not bring details, nor did he point to a path. “We have a problem that was created, which is the outcome of these four years that we have to address. It is an important issue to resolve”, said the former minister. “This outcome will be discussed”.
In an interview after the lecture, Haddad said that he tried to explain to the bankers that the positive effect of the tax reform and the improvement in public spending will be, as a whole, greater than the breach of the ceiling generated by the PEC.
“We have a cyclical problem of finding an adequate number to make the transition, but structural reforms have a much more lasting impact on growth.”
In addition to the PEC, another issue that keeps the economy up at night is what the new government’s fiscal anchor will be. And, after speaking for 30 minutes about what Lula intends to do in the economy, the former minister told journalists that it was “more prudent” to wait for the beginning of the government to debate the matter.
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
