Good morning! This week, we talk about the battles within the government over its deficit goals. The push for a black female Supreme Court justice. And Brazil’s fast-paced aging process.
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Haddad looks to be alone in zero deficit fight
Congress’s Budget Committee is scheduled to vote this week on the Budgetary Directives Law (LDO), which sets guidelines for next year’s budget. All eyes will be on whether lawmakers move to change the country’s deficit targets.
- Under the fiscal framework approved this year, the government must pursue a zero deficit budget (with a tolerance range of a quarter of a percentage point).
Driving the news. Last week, President Luiz Inácio Lula da Silva signaled that achieving a zero deficit next year is far from a priority for him. Congressman Danilo Forte, the rapporteur of the 2024 LDO, said in a recent interview that Lula’s words were not just a green light for Congress to adopt looser deficit rules — but rather an order to do so.
Haywire. Following Lula’s words, the stock...