Brazil faces institutional and fiscal challenges amid eroding democratic norms

Experts are raising concerns regarding the erosion of institutional stability and democratic norms in Brazil. Economist Ana Paula Vescovi warns that a loss of confidence in national institutions carries a high economic cost, potentially hindering long-term growth. She emphasizes that rising public debt and fiscal imbalances lead to high interest rates and reduced investment, noting that "the government cannot do everything, the government has limits." Vescovi argues that credibility must be built institutionally to ensure the country can seize global opportunities.

Simultaneously, economist Elias Fragoso critiques a systemic disregard for electoral regulations. He argues that political actors frequently bypass the Election Law through permanent campaigning and the use of illegal digital disinformation networks. Fragoso highlights that existing punitive measures, such as fines, are insufficient to deter billionaire party structures, describing them as an "insignificant operational cost" that fails to uphold the rule of law.