Leaders minimize effects of friction between Pacheco and Haddad in Minas debt

A crisis between the president of the National Congress, Rodrigo Pacheco (PSD), and the Minister of Finance, Fernando Haddad, does not worry the political leaders of Minas Gerais involved in debt restructuring negotiations of around R$ 165 billion with the Union. Interlocutors believe that the friction between Pacheco and Haddad will not have an impact on the proposal already promised by the Ministry of Finance to renegotiate the debts contracted by the States.

The conflict became public after the Luiz Inácio Lula da Silva (PT) government appealed to the Federal Supreme Court (STF) to reinstate the payroll of companies in the service sector. Lula had vetoed the extension of the exemption until 2027, but the veto was overturned by Congress. After Minister Cristiano Zanin responds, on a preliminary basis, to the request of the Federal Attorney General’s OfficePacheco classified the Lula government’s action as “hasty, out of context and out of place”.

However, government leader Romeu Zema (Novo) in the Legislative Assembly of Minas Gerais (ALMG), João Magalhães (MDB), minimizes the friction. “This has already been overcome”, points out the state deputy. “They have already lowered their weapons. Haddad has already made a nod, thanking Congress, and Rodrigo has already spoken in the same direction.” Questioned by Apart if, at a certain point, he feared any impact on the negotiations, Magalhães says that “it didn’t even cross my mind”.

Last Tuesday (4/30), Haddad, who went so far as to demand fiscal responsibility from Congress, thanked both Pacheco and the president of the Chamber of Deputies, Arthur Lira (PP-AL), for limiting the tax exemption for the Events Sector Emergency Resumption Program (Perse) to R$15 billion. “Contrary to what the headlines sometimes suggest, ‘House and Senate approve spending’, what happened was exactly the opposite, in fact,” praised the minister.

The leader of the Zema government bloc, Cássio Soares (PSD), echoes Magalhães. A supporter of Pacheco, Cássio observes that, as soon as the friction occurred, there were efforts to alleviate the climate and reestablish dialogue between the Lula government and the Senate. “I believe that we will not have any difficulties in this progress (on the States’ debt with the Union), because we are talking about something much bigger, which is the States’ investment capacity and the solution to debts”, assesses the deputy.

Possible retaliation from the Lula government after Pacheco presents an appeal to the STF to appeal Zanin’s decision, for example, is disregarded by the coordinator of the Minas Gerais bench in the Chamber of Deputies, Luiz Fernando Faria (PSD). “The government wouldn’t have all this evil. Then it would really create a line of confrontation and that is not the case. This is a specific issue. I have been talking to Rodrigo and I was with Haddad 15 days ago, who is very willing to resolve the debt”, he points out.

Despite the optimism of the deputies, Haddad’s interlocutors assess that, just like the payroll tax relief and the PEC dos Quinquênios, the proposal to restructure the States’ debt could burden public coffers. The plan is seen as “generous” for the States, but with the costs borne by the Union. They remember that the federal government needs resources to meet the zero deficit target projected for 2025.

Haddad had already displeased Pacheco when he dismissed the suggestions of the president of the National Congress when presenting a proposal to governors to restructure the states’ debt. Named “Interest for education”, the program conditions the reduction of the interest rate indexed to debts to the expansion of places in technical secondary education by the States. Of Pacheco’s suggestions, the proposal only incorporates the federalization of assets to reduce the debt balance.

In addition to displeasing Pacheco, the program left governors dissatisfied. So, they met with the president of the National Congress to present alternatives, such as, for example, linking the drop in interest rates to investments in infrastructure and public security and an index made up of the IPCA plus a nominal rate of 1%. Now, the presentation of a complementary bill in Congress is under discussion with the Ministry of Finance.

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