Haddad travels to Europe and questions the progress of the spending cut package

Even with growing market pressure for more information regarding the spending review, Finance Minister Fernando Haddad is expected to be absent next week. According to a report from Folha de S. PauloHaddad travels to Europe on Monday (4) and should only return to Brazil in the early hours of Saturday (9).

Haddad’s absence had already been signaled by the minister. Last Wednesday (30), the minister stated that an extra week would not harm the review and, on the contrary, would allow the quality of the work to be improved.

Haddad’s trip comes at a time of discussions about the spending cut agenda, which the economic team promised to define after the municipal elections. This week, the minister confirmed that the measures will need to be approved through a Proposed Amendment to the Constitution (PEC), but did not give details about the measures or specify when they will be announced.

The market awaits a significant spending cut package, which will allow the increase in mandatory expenses to be accommodated and make the new fiscal framework sustainable.