New government faces most challenging period since Plano Real, says Maílson to CNN

In an interview with CNN this Tuesday (14), the former Minister of Finance, Maílson da Nóbrega, assessed that the new government of Luiz Inácio Lula da Silva (PT) will face the “most challenging period since the Real Plan“.

“We have a situation of slowdown in the world economy, the resurgence of geopolitical risks in Ukraine and China, with the probable and feared invasion of Taiwan by Chinese troops. At the same time, a reconfiguration of global supply chains, such as the review of those long chains that designed iPhones in the United States and manufactured in Asia”, he declared.

“This reconfiguration can generate a less efficient, less dynamic economy, which is not a catastrophe, but it will affect the Brazilian economy. At the same time, the country is experiencing a very delicate, perilous fiscal situation, which requires courageous, tough reforms, by a president who has to demonstrate the capacity to mobilize society.”

According to Nóbrega, another point of attention is the state of the country’s public accounts. “Brazil, as it is, is not viable from the point of view of macroeconomic growth stability with this situation. 93% of the federal government’s primary expenditures are obligatorily allocated to personnel, social security, health, education, social income transfer programs,” he said.

“In other words, 7% of the Budget is left to implement public policies, pro-growth ideas, pro-reduction of inequality and poverty, and that cannot work. What we are seeing is that the government in transition, and most likely during the fiscal year, is worsening this situation with the Transition PEC, which could be a disaster.”

The former finance minister also commented on the market’s expectations regarding the new government’s economic team and proposals.