Politics
The political class has shut up over the latest blow to institutions by this government
Since taking office as president, Jair Bolsonaro has worked to undermine the credibility of Brazilian institutions. His attention was never directed to economic reforms of a liberal nature, or even to the defense of a conservative program in customs. Bolsonaro rules through chaos, using it as a strategy to retain power and take over the state by small interest groups.
The focus of this column was a list of the risks of Bolsonaro precipitating institutional collapse by trying to win the election at any cost. This week’s Senate agenda served as a practical example of this, showing that Bolsonaro’s government is not alone in this pursuit. As I write, the Senate is voting on a proposed constitutional amendment that would place the country on a “state of emergency” due to rising oil prices. Initially, the proposal provided for compensation to states that decided to reset the ICMS for fuel.
However, the PEC has turned into a package of state benefits, into shameless electoral populism. The project provides for the enlargement and expansion of the Auxílio Brasil, the exchange of trucks, gasoline vouchers, a subsidy for public transport and compensation for the ethanol sector. All this cost almost 40 billion reais this year. Some of these expenses may not be temporary. This is particularly risky as there have been no technical discussions on which to base these budgetary decisions. Thus, the medium-term and long-term fiscal risk increases.
Despite the high fiscal costs, the greatest damage is of an institutional nature. The amounts will be released despite the election calendar and cost containment rules dictated by the golden rule and spending ceiling. This is an irreversible damage to the system of checks and balances of the state budget, already sick of speaker expenses and the like.
There are doubts about the constitutionality of the PEC. Unfortunately, this was not enough for senators, even from the opposition, to oppose the proposal. It is because of this political convenience that we see our institutions weaken more and more. A rule governing political behavior is useless if social agents band together to weaken the system of checks and balances they have created.
Bolsonarist’s project to damage Brazilian institutions now enjoys the support of almost the entire political class, which conveniently remains silent about the latest blow to institutions by this government.
*INSPER PROFESSOR, Ph.D. IN ECONOMICS FROM NEW YORK UNIVERSITY STONEY BROOKE
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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.
For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!
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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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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).
General internet buff. Hardcore music maven. Typical foodaholic. Friendly student.
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