The mandatory public spending review package should be announced later this week, said this Monday (4) the Minister of Finance, Fernando Haddad. According to him, the government is ready to present the measures, with only a few technical and legal details remaining before sending the package to Congress.
At the request of President Luiz Inácio Lula da Silva, Haddad canceled the trip to Europe scheduled for this week. Officially, the ministry informed that the minister will remain in Brasília, “dedicated to domestic issues”. This Monday, Haddad confirmed that the trip was postponed because of the package announcement.
“My departure [à Europa] it was depending on this definition – whether, this week or next week, the announcements would be made. As the president [Lula] asked me to stay, and as things are very advanced from a technical point of view, I believe we are ready this week to announce [as medidas de corte de gastos]”, Haddad told journalists after returning from Palácio do Planalto.
From 9 am to 11 am, Haddad and several ministers met with President Lula to take stock of the actions of the G20, a group of the 19 largest economies on the planet, plus the European Union and the African Union, chaired by Brazil this year. In addition to Haddad and Lula, the meeting brought together ministers Rui Costa (Civil House), Mauro Vieira (Foreign Affairs) and Márcio Macêdo (General Secretariat).
“President Lula did not want to cancel the meetings that were already scheduled due to the summit meeting, with Itamaraty and the Treasury. We held this meeting. He now has some international phone calls that were also already scheduled. And then, more calmly, we talk to finish [as medidas da revisão de gastos]”, explained Haddad.
This afternoon, Haddad returned to Palácio do Planalto to talk to Lula about the package. The ministers of Planning and Budget, Simone Tebet, and of Management and Innovation in Public Services, Esther Dweck, and the Minister of the Civil House, Rui Costa, are participating in the meeting.
Haddad also reported that, over the weekend, Lula asked technicians from the economic team to present him with the details of the mandatory spending cutting measures. According to the minister, the points that are the responsibility of the Ministry of Finance are well advanced in their definitions.
The postponement of the trip and the expected announcement of the package later this week brought relief to the financial market. The dollar, which closed at R$5.87 last Friday (1st), closed at R$5.77. The stock market rose 1.7%.
