'If the financial market has a memory, it will remember how much it gained with Lula,' says Guilherme Mello.

247 - The economist Guilherme Mello, appointed by former Finance Minister Guido Mantega As one of those responsible for advising former president Lula (PT) on economic matters, he stated that the PT member does not need a new 'Letter to the Brazilian People' to "calm the market." According to Mello, "if the financial market has any memory, it will remember how much it gained during Lula's government."

Mello, who led the campaign of former São Paulo mayor Fernando Haddad (PT) for the Presidency of the Republic in 2018, currently coordinates a group of about 90 people who are participating in the elaboration of an economic proposal for a possible third Lula government.

>>> Mantega: "Lula doesn't have a gas station chain, Lula is the gas station chain."

Ao MetropolisMello stated that the market doesn't need to fear Lula's return, but that the Workers' Party leader's focus isn't on the wealthiest. "Our concern isn't about pleasing or displeasing the financial market. I'm not speaking for Lula, but I'm thinking about the debate among economists from the party and those connected to the Perseu Abramo Foundation."

"Our concern is to build alternative proposals that can be useful and important for a new development model, one that engages with the best and most current ideas being discussed in the world, and that addresses the needs of Brazil, the reality of the country, where people are going hungry. We are not concerned with a proposal that pleases or displeases Faria Lima," he said.

The economist also spoke against the spending cap, which has already been the target of... criticism from the former president himself and the federal congresswoman Gleisi Hoffmann (PR), president of the PT.

>>> "I don't intend to return," says Mantega about being Lula's Economy Minister.

According to Mello, there is consensus among economists linked to the PT (Workers' Party) regarding the inadequacy of the Brazilian fiscal framework. "Reality shows that reducing investment has become inappropriate. In fact, you have to recover the country's capacity to grow, generate formal employment for its workers, and generate revenue. Then, from this movement, you can find ways, with correct and high-quality investments, to have a high impact on job and income generation with a multiplier effect."

"This is how we will achieve a more appropriate fiscal balance that combines stabilization of public debt and even a reduction in public debt relative to GDP (Gross Domestic Product) with economic growth, job creation, and income distribution. That's what happened during Lula's period. Now, to achieve that, we have to activate the public investment circuit," he said.

According to the economist, there is also a consensus on the need to resume public investment. "Obviously, the only one who could answer what to expect from a future Lula government is Lula himself. Especially since he will be the new president and will lead a political movement, a broad political coalition to ensure its support. Now, what I can say is that there is also a consensus, a general agreement on the need to recover public investment and the role of the State as a driver of growth."

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