In his inauguration speech, Lula reveals what his government’s economic policy will be like

In a few sharp sentences in his inauguration speech, President Luiz Inácio Lula da Silva (PT) revealed that the central axis of his government’s economic policy will be a mixed re-edition between what was his second term, from 2007 to 2011, and the administration of Dilma Rousseff, with public induction of the productive sector, intervention in state-owned companies, real increase in expenses and strong presence of public banks.

He ensured the review of the country’s modernization reforms made in recent years and the repeal of the spending ceiling – a “stupidity”, according to him.

Despite the positive expectations for the Environment, Education, Health, Culture and the external sector, Lula’s diagnosis of the economy seems to ignore the current scenario in Brazil and the world.

Lula starts his third term with contracted risks of low growth, pressured inflation and international recession, an environment that evokes responsibility and efficiency, and not a goal with assumptions from the past.

It didn’t work back then, when the world was more stable and predictable, and it didn’t work for Brazil, which faced the worst recession of the century and lost investments.

In addition to the political discourse, the first economic measure of the new government is also the first political defeat of Fernando Haddad, the Minister of Finance.

In the first episode of the year, CNN Money will talk about the effects of Lula’s speech and also the expectations for 2023 for the Brazilian stock market, while markets in the United States, Europe and Asia remain closed because of the New Year’s holiday.

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