Politics

Lula takes ‘political path’ to offload next year’s budget – Politics

Published

2 years ago

November 9, 2022

Lula takes 'political path' to offload next year's budget - Politics

Senator-elect Wellington Diaz (standing) during a federal budget meeting in Brasilia.
(photo: VICTOR CORREIA/CB/DAPRESS)

Brasilia – A transition team President-elect Luiz Incio Lula da Silva (Portugal) yesterday hit the hammer on the approach to unpacking the 2023 budget, reaffirming a political option: drafting a constitutional amendment proposal (CAI) that would exclude areas of the spending ceiling strategy.

The deadline for approval, however, is short and the measure must be approved by December 15 so as not to jeopardize Auxlio Brasil payments and other campaign promises in the social sphere.

The text does not yet have a date for sending to Congress. “President Lula’s decision was taken along a political path,” said Sen. Randolph Rodriguez (Rede-AP), who served as PT’s campaign coordinator. “I do not want to believe that the Congress, which temporarily provided 600 reais before the elections, will now not provide this benefit on a permanent basis,” he added.

Another option could be a temporary measure to open an emergency loan to pay benefits. However, MP, the prerogative of the President of the Republic and Lula, will have to wait until January 1 to give a pen, which will reduce this month’s payment to 405 reais, since the sheet will be processed in December. There is still a legal path, based on a 2021 Federal Supreme Court (STF) decision, that would allow cost savings without the need for a PEC or MP. However, this will only apply to Auxlio Brasil and not other areas that Lula targets.

Yesterday, Randolph took part in a meeting with mayors, parliamentarians and municipal authorities to discuss amendments for 2023. On his side were Senator-elect Wellington Diaz (PT-PI), who was put in charge of transitional budget adjustments, and Oramento’s general rapporteur, Senator Marcelo Castro (MDB-PI). Among those present, the municipalities of Amap are most represented. The meeting took place on the mezzanine floor of the B-Hotel, in the central part of Brasilia.

It is estimated that the PEC will remove about 170 billion reais from the spending ceiling in strategic areas, called the “existential minimum”. Of this amount, BRL 70 billion is the amount needed to keep Auxlio Brasil at BRL 600 next year plus an additional BRL 150 for each child under 6 years of age. This amount was not included in the annual eloquence (Ploa) bill sent by Jair Bolsonaro’s government to Congress, despite promises made during the campaign.

According to Wellington Diaz, next year’s budget will have two axes, the first of which will be social, “that is, what is needed to ensure that this social safety net is not short of money,” he said. The other is the resumption of investment in the country. “Every time Brazil increases public investment, even at a low level, it helps boost development,” he added.

Good will

As for the approval of the PEC in Congress, which will need to be issued urgently, Diaz believes that there will not be much resistance to the project. “What we see in leaders and party leaders needs to be approved,” he said. “From a fiscal point of view, the change is very small,” he added, recalling the PECs dos Precatrios and PECs Kamikaze, approved in the current administration, which also passed the ceiling.

Randolph also said that he had already met with Senate President Rodrigo Pacheco (PSD-MG), who in turn spoke with Chamber President Arthur Lira (PP-AL). Both are set to urgently process the budget proposal.

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

The dollar continues to reflect the political scenario

Published

2 years ago

December 20, 2022

Goodwin Townsend

The dollar continues to reflect the political scenario

Yesterday, financial agents evaluated the opposite decision of the Federal Supreme Court (STF) regarding the so-called secret budget. In addition, a decision was made by STF Minister Gilmar Méndez to issue an injunction that would exclude the Bolsa Família from the spending cap rule, with investors trying to understand how this measure would affect the processing of the transitional PEC in the Chamber of Deputies. Oh this PEC!!!!

Since he is an exchange investor, any reading that the budget will be exceeded or become more flexible will negatively affect the exchange market, whether through the PEC or in any other way. We will continue with volatility today.

Looking beyond, the US Central Bank (Fed), although slowing down the pace of monetary tightening at its December meeting, issued a tougher-than-expected statement warning that its fight against inflation was not yet over, raising fears that rising US interest rates will push the world’s largest economy into recession.

The currency market continues to react to political news. The voting on the PEC is saved for today. It is expected that it will indeed be reviewed to open the way tomorrow for discussions on the 2023 budget.

Yesterday, the spot price closed the selling day at R$5.3103.

For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

Andrés Sánchez consults with the Ministry of Sports, but refuses a political post.

Published

2 years ago

December 20, 2022

Goodwin Townsend

The former president of the Corinthians dreams of working for the CBF as a national team coordinator. He was consulted shortly after Lula’s election.

Former Corinthians president Andrés Sánchez was advised to take a position in the Ministry of Sports under the administration of Lula (PT). However, he ruled out a return to politics. dreams of taking over the coordination of CBF selectionHow do you know PURPOSE.

No formal invitation was made to the former Corinthian representative, only a consultation on a portfolio opportunity with the new federal government, which will be sworn in on January 1, 2023.

Andrés was the Federal MP for São Paulo from 2015 to 2019. At that time he was elected by the Workers’ Party. However, the football manager begs to stay in the sport, ruling out the possibility of getting involved in politics again.

Andrés Sanchez’s desire is to fill the position of CBF tackle coordinator, which should become vacant after the 2022 World Cup. Juninho Paulista fulfills this function in Brazil’s top football institution.

The former president of Corinthians was in Qatar to follow the World Cup along with other figures in Brazilian football. During his time in the country, he strengthened his ties with the top leadership of the CBF.

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Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.

Politics

The EU has reached a political agreement on limiting gas prices – 19.12.2022

Published

2 years ago

December 19, 2022

Goodwin Townsend

Germany sentenced Russian to life imprisonment for political murder by order of Moscow - 12/15/2021

BRUSSELS, DECEMBER 19 (ANSA). European Union countries reached a political agreement on Monday (19) to impose a natural gas price ceiling of 180 euros per megawatt hour (MWh). The main sources of income for Russia and the minimization of the use of energy as a weapon by the regime of Vladimir Putin.

The agreement was approved by a supermajority at a ministerial meeting of member states in Brussels, Belgium, after months of discussions about the best way to contain the rise in natural gas prices in the bloc caused by Russia’s invasion of Ukraine. .

The value set by the countries is well below the proposal made by the European Commission, the EU’s executive body, in November: 275 EUR/MWh. However, the countries leading the cap campaign were in favor of an even lower limit, around 100 EUR/MWh.

Germany, always wary of price controls, voted in favor of 180 euros, while Austria and the Netherlands, also skeptical of the cap, abstained. Hungary, the most pro-Russian country in the EU, voted against.

The instrument will enter into force on 15 February, but only if natural gas prices on the Amsterdam Stock Exchange exceed 180 euros/MWh for three consecutive days. In addition, the difference compared to a number of global benchmarks should be more than 35 euros.

Italy, the EU’s biggest supporter of the ceiling, has claimed responsibility for the measure. “This is a victory for Italy, which believed and worked for us to reach this agreement,” Environment and Energy Minister Gilberto Picetto tweeted.

“This is a victory for Italian and European citizens who demand energy security,” he added.

Currently, the gas price in Amsterdam is around 110 EUR/MWh, which is already a reflection of the agreement in Brussels – in August the figure even broke the barrier of 340 EUR/MWh.

However, Russia has already threatened to stop exports to countries that adhere to the ceiling. (ANSA).

See more news, photos and videos at www.ansabrasil.com.br.

Goodwin Townsend

General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.