07/07/2024 – 21:25
Former Chief of Staff José Dirceu said, in an interview with Free Channelfrom Bandeirantes, that the interest rate in Brazil “did not go up or down because of the attacks (by President Luiz Inácio Lula da Silva on the Central Bank) or because he stopped attacking”.
In the interview released this Sunday, the 7th, Dirceu assessed that there was “a global situation”. “The dollar rose in South Korea, Japan, Chile, Mexico, Colombia and even in European countries. There is a global situation. Brazil is growing, employment is growing, income is growing, the trade balance is surplus, the country is on track, tax reform has been approved”, he stated.
When asked about the Lula government’s fiscal policy, José Dirceu defended a tax reform on income. According to him, this change would be essential to support the welfare state and public spending on social issues defended by Lula and supported by the Constitution.
“We have a very serious problem. We created a Constitution in 1988 with a welfare state, which does not exist in other Latin American countries, but we did not implement tax reforms on income, wealth and assets, which Europe did in the 19th century. If we bring the OECD tax structure to Brazil, Brazil’s problem will be solved.”
Governance
Lula’s former minister also said that the president faces a chronic governability problem due to the size of his most loyal allied base in Congress.
“The world has changed and Brazil has changed. In Congress, the parties that supported him (in the elections) are a minority. He has 300 votes led by Arthur Lira. This is an almost impossible government. The Labor Party won in Great Britain and will govern with 410 deputies. Governments in the minority in Congress have difficulty implementing their agenda,” he declared.
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