Brazil Finance Minister Dismisses Bolsonaro Trade as 'Hollow Illusion' After Asset Rally

Brazil's Finance Minister Dario Durigan on Thursday dismissed market enthusiasm over a Flavio Bolsonaro presidency as a "cheap, hollow illusion," after Brazilian assets rallied on the senator's stronger-than-expected first-round showing against President Luiz Inacio Lula da Silva. Speaking to CNN Brasil, Durigan said Bolsonaro's economic plan mirrors that of Argentina's President Javier Milei and would impose a drastic fiscal shock, cutting 200 billion reais ($39.80 billion) from the federal budget without detailing how the reductions would be achieved. "If, under the pretext of investing in the future, you destabilize the organism, the cost becomes very high," he said. Durigan contrasted Bolsonaro's blueprint with Lula's platform, which he said would preserve the current fiscal adjustment while potentially altering its pace. He also criticized Bolsonaro's proposal to review parts of Lula's consumption-tax reform, approved in late 2023 and due to take effect next year, calling the legislation well designed and a source of productivity gains.