The package of mandatory spending cuts will be announced after President Luiz Inácio Lula da Silva explains the proposals to the presidents of the Chamber of Deputies, Arthur Lira, and the Senate, Rodrigo Pacheco. If the talks take place by the early afternoon of this Thursday (7), the actions could be announced on the same day, said Finance Minister Fernando Haddad this evening.
According to the minister, there are only two legal details left to close the package, before President Lula takes the definitive decision on the measures. The final meeting, which would have taken place this Wednesday (6) afternoon, was postponed until this Thursday, at 9:30 am, because a meeting to discuss actions to combat climate change was delayed and lasted until the end of the afternoon.
“I believe that tomorrow’s meeting is a meeting that, due to the level of decision that will have to be taken by him [presidente Lula]these are really very simple things to decide”, said the minister. Haddad highlighted that the economic team and President Lula met with all the ministries involved in the measures: Social Security, Social Development, Labor and Employment, Health and Education.
Without advancing any measures, Haddad stated that the package will consist of a proposed amendment to the Constitution and a complementary bill. The minister admitted that some points were removed because they would generate small savings on the Budget. “There is no point raising a proposal with a controversial flag that has a low fiscal impact”, he declared upon leaving the Ministry of Finance.
Haddad did not comment on the meeting of the Monetary Policy Committee (Copom), which raised the Selic Rate (basic economic interest) by 0.5 percentage points, to 11.25% per year. The minister stated that he did not have time to read the statement issued after the meeting and said that he will wait for the minutes, which will only be released next Tuesday (12), to give his opinion on the Central Bank’s decision.
