Monday, October 21, 2013

Economic stability as a big issue on next year's presidential elections

The pre-salt auction has again gained the main pages of Brazilian newspapers today, but I’ll leave the subject for tomorrow’s post. For now, it’s suffice to say that there are occurring some protests and that according to Folha de S. Paulo and Valor Econômico, this probably could be the first and last auction in which Petrobras will be obliged to participate with at least 30% of participation in each area. As mentioned in a previous post in this blog, the state controlled oil company is short on cash, crippled by the government’s policy.

What I would like to call attention to is the interview of Eduardo Giannetti, economic advisor of Marina Silva to Folha, saying that she would stand for a lower state presence in the economy. It does not mean that she will take the liberal path, but probably that she would be more market friendly.

The interview is also another way of saying that the economy is going to be a big topic in next year presidential election. Giannetti praised the last term of Fernando Henrique Cardoso as a president (1999-2002) and the first term of Lula (2003-2006). After that the macroeconomic tripod (fiscal responsibility, inflation control and floating currency) was somewhat abandoned, he said.

No comments:

Post a Comment