União-PP Federation criticizes the government's fiscal package for IOF and demands spending cuts

The Progressive Union Federation has harshly criticized the alternative proposal by President Luiz Inácio Lula da Silva's (PT) government to the increase in the IOF. The text, which will be presented through a Provisional Measure (MP), has been seen as a new fiscal package and foresees an immediate increase in taxes without any spending cuts. In a statement read this Wednesday (11) by the president of União Brasil, Antônio Rueda, the parties stated that the current government has created an "escalation of fiscal imbalance".

"Public finances are not just about creating taxes, they are about cutting urgent waste. With each new budget deficit, the government overburdens society and those who produce the most with taxes. Taxing, taxing, cannot and will never be the solution; it is necessary to cut expenses," Rueda stressed, in a press conference at the Chamber of Deputies.

Rueda adds that "no one wins with a heavy, onerous and gargantuan government". He also highlights that the current government "should be the first to set an example of austerity".

"The world's largest economies collect less and offer much more to their people. If the government does not assume its share and present real proposals to streamline this heavy and inefficient machine, we will not accept handing these bills over to Brazilians," said the president of União Brasil.

Rueda then reported that the benches of the União/PP federation in the Chamber and Senate will meet, still this Wednesday, to "close the issue against any proposal to increase taxes that is not accompanied by a vigorous list of cuts and waste in the expenses column".

"It is necessary to understand that there are not two and only one budget column, revenue and expenditure. We will only accept examining any fiscal discussion if the expenditure column is at the center of the debate," he added.

Ciro proposes that the federation prohibit support for the Lula government

After Rueda's speech, the president of the Progressive Party, Senator Ciro Nogueira (PP-PI) harshly criticized the Lula government's handling of economic policy and argued that the future federation of opposition parties should discuss, in its bylaws, the prohibition of members from holding positions in the Executive Branch. According to him, the party will not shy away from institutional dialogue, but will not accept tax increases without predictability and efficiency in public management.

"What this country, the government, lacks today is transparency, predictability and competence to manage this current situation. We will not discuss any measure that does not involve spending cuts," said Nogueira.

The senator also made direct reference to the Minister of Finance, Fernando Haddad, stating that despite having consideration for him, he maintains a “radical disagreement” with the current economic conduct.

“The time has come for the three branches of government — not just the Executive, but also the Legislative and especially the Judiciary — to make their contribution and cut their expenses,” he said, demanding progress in voting on the “ super salaries ” bill for public service, which is awaiting a vote in the Senate.