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Market members say Lula’s speech shows that ‘pacification is only on paper’ and reinforce demands on finance minister

The strong negative reaction of the market to the speech of President-elect Luiz Inácio Lula da Silva this Thursday (10th) reinforced the demands of financial agents regarding the announcement by the Minister of Finance.

Financial market participants told CNN in a reserved character, that the signals given by Lula during his speech in Brasília indicated that, contrary to what the PT said, the pacification of the country is not on the agenda of priorities of the elected government.

According to them, only the definition of who will command the country’s economy may be able to reverse the bad scenario that began to take shape during Lula’s speech. What’s more, the name of the head of Finance needs to come, in the assessment of these agents, with a clear stamp of fiscal responsibility and that the speech of the elected president will not be strictly followed.

“The worst thing about Lula’s speech is not even the economic atrocities, they tend to be resolved with the shock of reality when he takes over the government. The worst is the burden of resentment and revenge,” he told the CNN an important banker.

According to him, Lula has not yet stepped down from the electoral platform and has shown that “the speech of pacifying the country will only be on paper”.

“Lula made it clear that his path will be to keep the polarization alive,” he told reporters. CNN 🇧🇷

In his speech this morning, Lula placed fiscal and social responsibility in opposing camps. The president-elect criticized the spending cap and the golden rule. “Golden rule is to ensure that no child goes to sleep without having a glass of milk,” said the president-elect, referring to the mechanism that prohibits the government from incurring debts to pay current expenses.

“Why are people forced to suffer to guarantee this country’s fiscal responsibility? Why do they say all the time that it is necessary to cut expenses, it is necessary to have a surplus, it is necessary to meet the spending ceiling?”, asked Lula, during the speech. “We are going to change some concepts, many things considered as expenses, we have to consider them as investments”, said the president-elect.

Source: CNN Brasil

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