Lula again takes aim at the financial market
President Luiz Inácio Lula da Silva (PT) escalated his rhetoric against the financial sector on Thursday (10th) by stating that keeping interest rates high directly undermines the State's ability to fund public policies — especially education.
According to the president, each percentage point kept on the benchmark interest rate means less money circulating in social investments. The criticism targeted what he calls "whining" by market agents, in reference to the financial corridor of Avenida Faria Lima in São Paulo.
"All it does is whine," says president
Commenting on pressure for fiscal adjustment and spending containment, Lula mocked the market's rhetoric. For him, the sector complains repeatedly but offers no concrete alternatives for the country's development.
> The president's central message is clear: while the financial sector presses for cuts, the government intends to expand fiscal space for investments in areas considered priorities.
The statement reinforces a line adopted throughout his term, in which Lula often contrasts market logic with the defense of social programs and infrastructure works.
Education at the center of the debate
The central point of the address was education. According to the president, the funds no longer applied to schools, universities, and training programs are, in practice, transferred to pay interest on the public debt.
- The president argues that high interest rates make credit more expensive and hold back growth;
- He advocates that the State regain its capacity to invest in social policies;
- He rejects the idea that balancing the accounts requires cutting spending in essential areas.
In Lula's assessment, the austerity preached by the market does not solve the structural problem of public accounts and also penalizes the poorest population.
Reaction and context
The statement comes at a time of tension between the government and economic agents, who demand fiscal responsibility and stricter targets for the public accounts result. On the other side, the Planalto Palace argues that economic growth and social inclusion are conditions for debt sustainability in the medium term.
Criticism of Faria Lima is nothing new in the president's repertoire; he had already linked the market's behavior to an alleged pessimism about the country. On Thursday, however, the connection between interest rates and education gave the speech a new tone.
> For the government, the fiscal debate cannot be dissociated from the social debate.
What is at stake
The clash between the Executive and the financial sector has practical effects on the conduct of economic policy, the path of the interest rate, and the pace of expansion of public spending. The issue is expected to remain at the center of the news in the coming months as the government tries to reconcile fiscal responsibility, growth, and social investment.
The president's statement signals that the defense of social investments will remain a hallmark of his administration — and that the financial market will continue to be a preferred target of his criticism.