Brazil’s Lula, Lower House Speaker Meet to Address Budget Impasse

(Bloomberg) -- President Luiz Inacio Lula da Silva met on Monday night with lower house Speaker Arthur Lira at the presidential palace amid the crisis between the three branches of government, after the Supreme Court suspended lawmakers’ budget amendments, says Folha de S.Paulo, which does not reveal how it obtained the information and does not give details of the meeting.

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Lawmakers assess that the top court ruling, initiated by a decision from Justice Flavio Dino, had the support of members of the federal government. Dino is a former member of Lula’s cabinet.

Lula, for his part, is seeking conciliation and working on a counterproposal for the amendments, according to Folha de S.Paulo, while lawmakers seek retaliation.

On Tuesday, president of the court Luis Roberto Barroso will meet with Lira, Senate head Rodrigo Pacheco and Lula Chief of Staff Rui Costa, according to local newspapers.

The meeting is seen as a first step, and there is no prospect for an immediate solution, says CNN Brasil, which cites unidentified interlocutors from the presidential palace and Congress.

Reaction

Congress postponed the vote on the budget guidelines law until after October municipal elections, says CNN Brasil, which cites the president of the joint budget committee, congressman Julio Arcoverde.

Spending Review

Brazil’s economic team will review spending in social programs, Deputy Planning Minister Gustavo Guimaraes said in a broadcast event. The review will be included in 2025 budget proposal, he added.

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