Brazil’s future finance minister Haddad already talks about ending the spending cap

After attacking the spending cap, the future Minister of Finance, Fernando Haddad (PT, progressive-globalist), doubled down and defended replacing the fiscal austerity mechanism.

“Everyone knew it was a precarious way out; it was not sustainable,” he said in an interview with GloboNews on Wednesday, Dec. 14.

In place of the mechanism, Haddad wants to put a “new fiscal anchor” at the beginning of the year, to be done by complementary law, and also promised to “unlock” Public-Private Partnerships as a means to make investments.

The president will present the proposal at the beginning of next year.

Haddad denied that ending the spending cap would be a “break with fiscal responsibility”.

“Not at all,” assured the future minister. “It means showing the country that a more reliable long-term design is possible. It is good, sustainable, and brings the trajectory to the right level.”

Moreover, in the interview, Haddad advocated a “strong state” that pays all the bills.

“There are more appropriate ways to make fiscal responsibility and social responsibility compatible, even because I consider fiscal responsibility part of social responsibility,” he said.

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