Lula’s fiscal policy remains at the center of the debate amid geopolitical tensions

“In Brazil, nothing is as permanent as a temporary spending program.” The phrase is by Pérsio Arida, who is on the transition team of the elected government of Luiz Inácio Lula da Silva (PT).

From New York, where they are participating in an event with Brazilian businessmen, Arida, Henrique Meirelles and Roberto Campos Neto, president of the Central Bank (BC), echoed the risks regarding the lack of transparency, credibility and fiscal responsibility in the midst of discussions on the Transition PEC, while Lula attends COP27, in Egypt.

Brazilian markets remain attentive to the movements of the elected government’s economic policy, still groping in the dark, at the same time that the geopolitics of the war in Ukraine gained a new layer of tension last Tuesday (16): two missiles fell in an area rural Poland, 5 km from the border with Ukraine, and killed at least two people.

It was the first time in almost nine months of war that a NATO country was hit, raising hypotheses about possible involvement in the conflict by other Western powers, based on Article 5 of the alliance’s Charter.

Experts on Polish military issues doubt that it was an intentional attack, and, this Wednesday, discussions about the authorship of the projectiles already brought some relief to fears of an escalation in the war.

Also on the radar is consumer inflation in the United Kingdom, which, at 11.1% in October, exceeded market expectations and the previous September level.

Presented by Thais Herédia and Priscila Yazbek, CNN Money presents an overview of news topics that influence markets, finances and the direction of society and power dynamics in Brazil and the world.

*Posted by Tamara Nassif