The government’s economic area attributes the action to a mismatch of expectations created from and what actually ended up being announced by the minister (Finance).
In the words of a technician, there was “information asymmetry”, with the wrong perception of measurements.
According to him, market analysts, based on the leaks, made calculations that they hoped to see come to fruition. At the same time, it caused discomfort to , something that was not foreseen in the initial package. The problem was so acute that it forced the presidents of , (PP-AL), and , (PSD-MG), to .
The government’s optimistic assessment is that, as economic agents gain more information about the measures, the reaction will cool down, with the dollar falling below R$6. This will intensify with the eventual approval by Congress of the measures already proposed.
The government insists that the package is an adjustment to keep the framework standing, insisting on savings of R$30 billion for 2025, in addition to the already announced cuts of R$25 billion this year.
According to a person who participated in the discussions, the adjustments serve to guarantee space for discretionary spending, which was being “crushed” with the growth of mandatory spending.
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