“It’s political noise that pollutes the economy,” says Paulo Gedes | Economy

“We are carrying out a number of important reforms, as we move forward, there is an exacerbation of political confrontation. On the one hand, I strongly believe in democracy and our institutions, but some of the actors are superior to themselves. It’s all over the place, “he said. The minister during a virtual event with an investment broker.

“It is this political noise that pollutes the economy. And there are two sides to the political noise, ”he continued.

Without naming the names of the participants, Gedes explained what, in his opinion, these excesses would be.

“There is a former deputy who threatens the Supreme, then the Supreme begins to violate secrecy, to arrest people. I mean, you start to introduce a strange regime. The President rules, before you face scandals around every corner, today you have to make a huge CPI that starts with a vaccine, it has already been introduced fake news, she is looking for him, it’s a hunt until you find it, then the president reacts, ”he listed.

Gedes said he expects institutions to “moderate actors” who are “superior to themselves.”

“There are actors who are fighting. I just hope the institutes will moderate the actors, that’s all. ”

Live, Gedes said he sees a strong foundation for the Brazilian economy, despite high inflation and the recent appreciation of the dollar against the real.

“We are doing our homework, fiscal policy is strong, now there is a political narrative and internal inconsistencies, people are demanding to spend more, they want to be elected next year, it’s a hell of a mess, but the president has kept that commitment. to fiscal responsibility, with a ceiling [de gastos], he supported me, ”he said.

Gedes confirmed that the social program Auxílio Brasil, which will replace Bolsa Família, will be within the spending ceiling, and he again said that the proposal to split orders (Union debts recognized by the courts) is a way to comply with the spending ceiling and the Tax Liability Act ( LRF).

With regard to inflation, the minister acknowledged that growth has affected all sectors of the economy and said that the government will use two auxiliary tools control price increases:

• lower rates MERCOSUR – the measure requires unanimous approval from the countries of the trade bloc, but Argentina has already spoken out against the change.
• lower industrial goods tax (IPI), which will be the third phase of the government’s tax reform and therefore will be subject to congressional approval.

“We have the tools and we will use them,” he promised.