Former Central Bank President, economist Armínio Fraga said on Monday, 17, that the President of the Republic, Luiz Inacio Lula da Silva, is unable to repeat the performance of his first two terms and that, for this, have weighed a “harder surroundings”, in mention of the National Congress, and the lack of ideas.
“I am an admirer of President Lula’s history, but he is not repeating his performance in previous presidencies, including because the surroundings is more difficult, he has no control of Congress, and also because the lack of ideas seems very worrying to me,” said Armínio, in lecture to Impatech students, the undergraduate arm of the Pure and Applied Institute (IMP), in Rio de Janeiro.
“In Brazil there are interest rates that, doing nothing, you earn 15%. With 5%inflation, it is gaining 10%. There is a serious problem. The symptoms of patient Brazil, in the financial part, are extremely serious, and in the symptoms of growth, could not get a drag, something that comes in a long time. I am not very comfortable, ”added the economist in response to students’ questions.
Lost governments
Earlier, during the lecture, Armínio gave a presentation to answer why Brazil does not learn from past errors for sustained growth.
He said that in 2016, already under Michel Temer, it was the last time the Brazilian government agreed with reforms such as Social Security, and legal frameworks such as sanitation and state law. “Since then (Bolsonaro and Lula governments), I think we got lost in the economy,” he said.
To top it off: “I don’t see a vision, a development strategy. You need to have priority and quality in public spending, and then it can walk. A strategy is missing, a state reform for real, ”he said, making a differentiation to what Donald Trump is doing in the United States, which he defined as“ state dismantling ”. “We don’t need this (Trump fashion dismantling) at all. Our state is medium -sized and is of good size for us. But it could be better. It’s not to decrease, but to improve, ”he said.
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Fragile prosecutor
Armínio recalled that today, so -called tax spending, “basically subsidies”, are seven points of GDP, and that social security has a huge hole, which is why it will have to pass “inevitably” by another reform.
He continued: “Today we have a very fragile, financial situation, which pressures interest rates, the highest on the planet, and this is not the Central Bank’s evil.”
