Photo: Alan Santos/PR
The market celebrates the failure of Bolsonaro.
“Devastated by the fiscal shocks encouraged by President Jair Bolsonaro and his allies, the National Treasury has yet to pay the market the price of insecurity caused by election costs and distractions such as the secret budget.”says Estadão in an editorial.
“Financing public accounts became as expensive as at the end of President Dilma Rousseff’s first term, when signs of mass financial unrest were already visible. To sell the 40-year notes linked to the IPCA, the Ministry of Economy had to commit this week to a real rate of 6.17% per annum. The value at the beginning of the term, in January 2019, was 4.76%, and at the time of the approval of the pension reforms, it reached about 3%. Bad for the Treasury, market mistrust is disastrous for the economy and for most Brazilians, especially the poorest.”