Part 3/8:
The financial undertakings of Lula's government have been fraught with challenges. For instance, the recent spike in interest rates, with the government paying a staggering IPCA plus 7.94% for short-term debt, reflects an inability to secure affordable credit. Economists warn that the growing perception of impending fiscal disaster could lead to a higher risk of default, tightening lending conditions further and exacerbating the existing economic malaise.
Analysts like William Vack underscore that Lula lacks a coherent plan to stabilize the economy or address mounting inflation, particularly in essential sectors. In closed-door meetings, Lula's conversations with his aides often reveal confusion and a lack of decisive strategies, pointing to a precarious grip on power.