HADDAD: “O BRASIL SE RESOLVE EM UMA REUNIÃO”

Summary

Fernando Haddad discusses fiscal adjustment in Brazil, arguing that the budget is too rigid and that reform should start by cutting privileges rather than burdening the poor. He criticizes high real interest rates and central bank communication, suggesting that a comprehensive political agreement could lower rates and improve expectations.

• Haddad defends the minimum wage policy as sustainable but acknowledges the budget is too rigid.
• He argues fiscal adjustment must begin with privileges (penduricalhos, military pensions, parliamentary amendments).
• He criticizes Brazil's high real interest rates (10% real with 4-5% inflation) as excessive and unsustainable.
• He blames poor central bank communication and the 'XP Day' incident for worsening expectations.
• Haddad claims that a political agreement cutting privileges could lower interest rates within one meeting.
• He contrasts his approach with Milei's 'chainsaw' austerity, preferring a 'screwdriver' method focused on fairness.