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Brazil’s Lula to Decide on Fiscal Measures After Foreign Trips, Finance Minister Says

President Luiz Inacio Lula's government is studying a new fiscal rule to turn temporary spending freezes into lasting cuts, aiming to calm investors after recent market sell-offs.
Brazil's gross debt rose to 82.9% of gross domestic product during Lula's current term, pushing investors to demand higher risk premiums for government debt.
Minister Dario Durigan said the government must create conditions for borrowing costs to fall in a "sustainable and structural" manner, noting high interest rates harm all economic sectors.
Following his return from an overseas trip later this month, President Lula is expected to decide on potential fiscal measures, Durigan said Thursday.
The economic team plans to demonstrate fiscal discipline soon so Congress can pass measures this year, seeking to avoid market disappointment seen in late 2024.

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