Haddad says he called Lira and had an ‘excellent’ conversation, after saying in an interview that the Chamber cannot ‘humiliate’ the Senate and the Executive

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Minister of Finance said that the statement was not ‘critical’ of the Chamber’s actions and highlighted that it is ‘only praise’ for Congress. President of the Chamber rejected ‘biased and out of context’ manifestations. Minister Fernando Haddad (Finance) in a statement to the press this Monday (14) Reproduction/TV Globo Finance Minister Fernando Haddad said this Monday (14) that he called the mayor, Arthur Lira (PP- AL), to clarify speech, which according to him, was interpreted as a criticism of the House. The statement came after the minister stated, in an interview recorded last Friday (11) and shown today, that the Chamber of Deputies “has very great power and cannot use that power to humiliate the Senate and the Executive”. According to Haddad, the passage was not a criticism of the Chamber’s actions. “My statements were taken as a criticism of the current legislature. In fact, I was making a statement about the end of so-called coalition presidentialism. […] I defended, during the interview, that this relationship was more harmonious and that it could produce the best results”, he told journalists. The minister said he agreed to the statement to the press in a phone call to Lira. According to Haddad, the conversation with Lira “was excellent” and removed the critical tone of the House. “We are not going to make a battle horse out of this. The first step I took was to call President Arthur Lira and clarify the context of my statements. My statements do not concern the current legislature. I am only praising the Chamber, the Senate and Judiciary. We would not have gotten here without the competition of the Powers of the Republic.” In a publication on social networks, Arthur Lira stated that “biased and out of context demonstrations do not contribute to the process of dialogue and building bridges so necessary for the country to move forward”. Lira also said that it is “wrong to assume” that the articulation for support in proposals in the House “reveals the concentration of power in the figure of whoever it may be”. “The formation of a political majority is done with credibility and permanent dialogue with the party leaders and the members of the House. This mission belongs to the government, and not to the president of the Chamber, who even so has been making efforts to make it happen”, he wrote. New fiscal rule In the Chamber, Haddad’s economic team follows and awaits the conclusion of the analysis of the new fiscal rule. The text has already been approved by deputies, but underwent changes in the Senate and returned for analysis by the House. The government’s expectation was to approve the measure by the end of August, when the deadline for the Executive to present the Budget proposal for 2024 expires, but there is still no date for the new round of voting in the Chamber. Earlier this month, the mayor, Arthur Lira (PP-AL), argued that there is a lack of consensus among deputies to confirm or reject the changes made by the Senate. House leaders were expected to discuss the proposal on Monday night. But, according to Andréia Sadi’s blog on g1, Arthur Lira canceled the meeting. The decision was taken at the request of the parliamentarians, after Haddad’s speech. In general terms, the new fiscal rule provides that expenses can grow above inflation, but respecting a fixed range of real growth: between 0.6% and 2.5%. In addition, spending growth is limited to 70% of government revenue growth. For example: if revenue rises by 2%, expenditure may increase by up to 1.4%. If approved, the proposal will replace the spending cap, in force since 2017, which limits the growth of most government expenditures to the previous year’s inflation.

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