Echoes of the past at the gates of the Planalto Palace.

Since last night, there has been a great uproar in front of the Planalto Palace. Yesterday, the Judiciary employees were protesting against Dilma's veto of the readjustment, which could reach a 78,5% increase. Today, it's the Executive branch employees, demanding a raise and threatening a strike. Meanwhile, later today at 17 PM, the economic team will announce a reduction in the fiscal surplus target and a new budget cut, which could reach R$ 10 billion, to meet the new, much lower target. The market is watching with great concern.

Last night, starting at 21 PM, I was on the ground floor of the Supreme Federal Court (STF), waiting to go live on RedetvNews, the Redetv news program where I'm a political commentator. From there, we could hear the uproar from the other side of the Three Powers Square. Ten out of ten speeches were essentially political in tone, with no demands whatsoever. What we heard were heavy political attacks on Dilma, the PT (Workers' Party), corruption, Minister Ricardo Lewandowski, and challenges to the Senate President, Renan Calheiros, to overturn Dilma's veto. "This government needs to end," said one civil servant without mentioning his salary problems. "78 percent will be Dilma's new disapproval rating," said another, protesting the information that some might receive raises to that level. No one ignores that the civil servants of the Judiciary, as well as those of the Legislative branch, earn much more than those of the Executive branch. And that they don't earn badly, considering salaries and bonuses combined.

But what truly shocked me and my team was a group that, after the protest ended, went to retrieve their cars from the Supreme Court parking lot. They were shouting obscene, atrocious insults, unprintable, against Dilma, Lewandowski, and others. Well, brutes and boorish people exist in all professional categories, but that was yet another sign of the times – of hatred, intolerance, and incivility – and of how much the veto will disrupt the political scene when August arrives. But it was necessary, and no category can feel, at this moment, above the country's capabilities.

Today, those in the Executive branch went to the same location to announce that they will go on strike if their demands are not met.

We've seen this movie before, back in the days of inflation. Everyone wanted to secure their own position, they invented wage adjustment laws that didn't compensate for losses, and strikes broke out all the time. Political instability and inflationary expectations fueled the process.

Soon there will be an announcement of a reduction in the primary surplus target. Levy and Nelson Barbosa, and also Dilma, will have to explain very clearly that this is happening not due to fiscal tolerance but because of the real impossibility of reaching 1,2% at a time of recession that is dwindling government revenues. They will have to clearly indicate the direction they will continue to pursue, that of balanced accounts, even if within a more flexible timeframe. Otherwise, we will see an increase in the bad mood of economic agents, coupled with the political crisis.

It may not seem like it, but between the announcement and the protests by public employees, there is a strong echo of a past that cannot be allowed to return.