Brazilian President Lula, in his first TV address since winning a fourth term on
Sunday, pledged to uphold public finances while preserving social programs to
reassure investors. He said the trajectory of public debt and high interest
rates worry him and reiterated a commitment to fiscal responsibility to ensure
social-policy sustainability and spur investment. Lula flagged lowering
borrowing costs as a key challenge and said his government would create
conditions to reduce rates and lift investment above 20% of GDP, but he gave no
details on spending cuts, revenue measures or other steps to support public
accounts — a central investor concern as he begins a new four-year term.
