Lula's game plan in the face of the loss of support in Congress

Luiz Inácio Lula da Silva's third term faces a moment of strong political exhaustion, marked by the government's loss of support in the National Congress, as pointed out by Estadão.

The strategy chosen by Planalto to deal with this scenario was the adoption of a game plan classified by analysts as unwise, revealing the president's clear unpreparedness to face the institutional challenges of this administration, according to Estadão.

Despite the difficulties in political articulation, the internal assessment of Palácio do Planalto is at odds with parliamentary reality: Lula considers the vote in the second round to be indisputable proof of the success of his current mandate, according to Estadão.

However, the main point of economic concern lies in the government's demonstrated inability to make an effective change in the fiscal regime and the lack of understanding about the need to reorient macroeconomic policy, points out Estadão.

What changes for the investor

The uncertainty surrounding the sustainability of public accounts and the rigidity of macroeconomic policy generate caution in financial markets. Investors who operate the stock market, interest rates and foreign exchange closely monitor the impacts of political instability on the government's ability to approve structural reforms and maintain fiscal responsibility.

Automatically translated from Portuguese.