Brazil President Lula drops PT economic proposals, signals fiscal restraint

President Luiz Inácio Lula da Silva decided to remove several economic proposals championed by factions of the Partido dos Trabalhadores (PT) from the party's upcoming program. Items excluded include a zero‑fare public‑transport policy, reversal of privatizations and measures related to capital controls. The revised document will instead signal the need to contain the growth of mandatory spending, aiming for fiscal consolidation with a target primary surplus and a cumulative adjustment of about two percent of GDP by 2030.

Senator Flávio Bolsonaro, a candidate for the presidency from the Liberal Party (PL), wore a scissor‑shaped brooch during the announcement of Alfredo Gaspar as his vice‑presidential running mate. The accessory symbolizes his "tesouraço" pledge to cut taxes, public expenditures and bureaucratic hurdles, proposing a reduction of public spending equivalent to 1.5% of GDP, a revision of the fiscal framework, expanded concessions and private‑sector partnerships, and other measures to restore fiscal credibility.