Unrest in Brazil may affect the economy
2023.01.09 13:31
Unrest in Brazil may affect the economy
By Kristina Sobol
Budrigannews.com – Three people with knowledge of the situation told Reuters on Monday that the attack on state institutions in Brazil on Sunday is likely to delay the first actions planned by President Luiz Inacio Lula da Silva’s economic team.
Finance Minister Fernando Haddad had publicly stated that he would make his first announcements this week, under pressure to present concrete actions to address the country’s public accounts deficit, which was exacerbated by Congress’ approval of a multi-billion reais spending package to fulfill campaign promises.
One of the sources, who spoke on condition of anonymity, stated that the Chief of Staff Cabinet is discussing the timing of the announcements.
“The announcements may take some time to come out. A second source stated, “The situation is extremely complicated.”
On Sunday, a large number of supporters of the former president Jair Bolsonaro broke into the Congress, the Supreme Court, and the presidential palace. The supporters disagree with the recent election result, which Lula won in October by a small margin. On January 1, Lula assumed office.
The nation’s attacks on state institutions are regarded as the worst since the 1980s, when democracy was restored.
Haddad and Lula still needed to decide on the list of things to do, with a focus on cutting costs and increasing revenue. Currently, the minister is personally attending emergency meetings with Lula and other power brokers.
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Two additional sources from the economic team said that ministry technicians are still working normally. One of them expressed optimism that the announcements would not be affected by the most recent events, which were criticized worldwide and in Brazil.
