The federal deputy and president of the PT, Gleisi Hoffmann (PR), came to the defense of President Lula (PT) and said that the PT member “acted very well” in taking his time to announce the government’s spending cut package.
According to Gleisi, President Lula has resisted “unreasonable pressure from the markets and their spokespeople in the media”.
“Unison editorials of Globo, Folha and Estadão They reflect the frustration and even astonishment of media owners with the non-disclosure, until now, of the so-called fiscal adjustments that they demand so much. They hope to impose on the government and the country the sacrifice of retirees, workers, health and education, which may even match the frenetic neoliberalism of the past government, but not with the government that was elected to rebuild the country”, said Gleisi in , this Sunday (10).
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“They invert the equation of the real economy, which requires more credit and investments to continue growing, and threaten with more interest and more speculation with the exchange rate, as if this would bring about fiscal balance and reduce inflation. Lula acts very well, with caution and a lot of responsibility, resisting unreasonable pressure from the markets and his spokespeople in the media”, added the congresswoman.
Cost cutting package
President Lula has held several meetings with his ministers to decide on the spending cut package.
With the package expected to be announced this week, some of the ministers have shown resistance to giving up part of their portfolios’ budget, while the market has shown nervousness about the delay in the announcement and the president’s public statements on the matter.
Lula has demanded cuts in the other Powers of the Republic and criticized the market for the demand.
After three rounds of negotiations, last Friday’s meeting (8) between President Lula (PT), the economic team and ministers from the areas affected by the spending cut package ended without agreement.
The economic team proposes a cut of R$50 billion in the government’s mandatory expenses, in order to maintain the fiscal target – zeroing the public account deficit in 2025.
The result reflects yet another strain on the economic team and the Minister of Finance, Fernando Haddad, who has been striving to maintain the credibility of the fiscal framework within the financial market.
