The president of the Central Bank (BC), Roberto Campos Neto, praised the economic policy that has been implemented by the government of President Javier Milei, in Argentina, and once again criticized the Proposed Amendment to the Constitution (PEC) that eliminates working hours 6×1.
Campos Neto’s statements were made during an event at the São Paulo Commercial Association (ACSP), where the BC president was honored, on Tuesday (19).
Campos Neto cited the Argentine government’s economic measures when dealing with the fiscal issue.
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According to the BC president, when fiscal expansion measures are implemented in a scenario of high perception of account imbalance, the effect generated may be contrary to what was expected.
“In other words, I create a fiscal package trying to make the economy grow and the effect is an economic contraction because the risk premium element, which affects people’s willingness to spend and invest, ends up being greater than the money that was invested in circulation. You try to push the economy through fiscal means but in reality you make it shrink,” said Campos Neto.
In the economist’s assessment, Argentina is an example of the opposite also happening. When fiscal measures, even announced in a scenario of account imbalance, can generate better economic performance than expected.
“In the beginning (after fiscal contraction measures in Argentina), the economy did not grow much. Now it is surprising upwards because the reduction in the risk premium is worth more than the money you took out of circulation due to the contraction (in expenses)”, said Campos Neto.
6×1 scale
Also, at the time, the BC president once again criticized the PEC that puts an end to the 6×1 scale. According to Campos Neto, there is “doubt in the air” about the direction of interest rates in the United States and “great expectations” about the spending cut package that will be presented by the Lula government.
This Thursday (21), the Minister of the Civil House, Rui Costa, stated that technicians from the ministries involved in the spending cut package must finalize the fiscal adjustment guidelines by Friday (22) to present it to President Lula ( PT) signaling that the final presentation
On the 14th, during a lecture at the Vitória Freedom and Democracy Forum, Campos Neto classified the initiative to end the 6×1 scale as “quite harmful”.
“It is a project that I think is very harmful for workers, because in the end it will increase the cost of work, informality and reduce productivity”, stated the president of the BC.
The topic gained repercussion this week due to the Proposed Amendment to the Constitution (PEC), presented by Erika Hilton, leader of the PSOL – Rede federation in the Chamber of Deputies, which proposes the extinction of the 6×1 working day.
The PEC proposes replacing the 6×1 working day – in which employees work six days a week, taking one day off – with a 4×3 working day, with four days on and three days off.
