Without fiscal responsibility, there is no trust, says former BNDES president

In an interview with CNN , this Thursday (17th), the economist and former president of the BNDES, Edmar Bacha, stated that without fiscal responsibility, there is no trust. Bacha criticized the speech given by president-elect Luiz Inácio Lula da Silva (PT) at COP27, in Sharm el-Sheik, Egypt.

“Lula’s speech implies a contradiction between fiscal responsibility and social responsibility. Indeed, fiscal responsibility is a condition for exercising social responsibility. Without fiscal responsibility there is no trust. If there is no trust, interest rates are high and investment is low. As a result, the economy does not grow and those who suffer are the poorest, ”he said.

The day after the Transition team delivered the draft of the PEC to Congress, Lula stated that “it’s no use thinking only about fiscal responsibility” and he stated that when talking about spending ceilings, money is taken “from health, education and culture”.

For the former president of BNDES, if the transition team had already presented a responsible name to lead the Economy, the environment would be “less cloudy”.

“If there was already someone in charge of the Economy, without a doubt, the environment would be much less cloudy than simply asking for a license to spend without showing what the economic and financial plan is to guarantee the balance of public accounts”.

In addition to Bacha, economists Armínio Fraga, former president of the Central Bank (BC) and Pedro Malan, former finance minister, published this Thursday a letter criticizing the president-elect’s speeches on fiscal responsibility and the financial market. . The document was published in the newspaper Folha de S.Paulo.

*Watch the full interview in the video above.

Posted by Pedro Zanatta, from CNN Brasil Business