"Lula should send a bill to the Chamber of Deputies ending the independence of the Central Bank," says Breno Altman.
However, the journalist sees difficulties in approving a potential project.
247 - In an interview with TV 247, journalist Breno Altman argued that President Lula should present a bill to the National Congress that would end the so-called 'independence' of the Central Bank.
The institution has been the target of criticism from the federal government, which considers it a priority to put the country back on the path to economic growth, but has limited alternatives due to the high basic interest rate, maintained at 13,75%.
Asked if there was anything that could be done besides criticism, Altman replied: "Send a bill to the Chamber of Deputies ending autonomy."
However, he believes the government will face difficulties in approving any proposal to remove the Central Bank's independence. “I think there are difficulties, but I think the President of the Republic will at some point have to take some action, because when you choose to create tension with the president of the Central Bank, which is correct—the President of the Republic was elected, and to be elected he has the power to do this—you need to find a solution to the problem. The problem is very serious, not just a little serious. In practice, there is suspicion about the behavior of Roberto Campos Neto. It goes beyond a technical questioning of the Central Bank. There is a questioning of the behavior of the president of the Central Bank,” said Altman.
“The President of the Republic can immediately end the independence of the Central Bank. It wasn't even a constitutional amendment that created the Central Bank amendment. It was an ordinary law. Another ordinary law ends the independence of the Central Bank. That's how it works in the democratic game. Does the government have the power to approve a law of this type? It's a good test, because this is a very serious problem,” he continued.
“What is the government's situation? If the government is not implementing fiscal expansion, and the Finance Minister's discourse so far has been one of relative fiscal contraction, spending cuts, approval of the fiscal anchor, and a commitment to eliminating the primary deficit. If the government is not expanding fiscally, therefore it has no resources for fiscal policy, and on the other hand, you have an ultra-contractionary monetary policy, with the real interest rate already hitting 8 percent, how is the country going to grow? Where will investment come from? You are contracting on both ends, fiscally and monetaryly,” he concluded.
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