Amid pressure to provide budgetary remedies, the finance minister of Brazil cancels his travel to Europe

Brazil’s Finance Minister Fernando Haddad announced in a statement on Sunday that he had postponed a trip to Europe this week due to pressure from market players for the government to deliver on promised spending-cut measures.

Haddad will now spend the week in Brasilia at President Luiz Inacio Lula da Silva’s request, according to the Finance Ministry’s statement.

According to the government, the minister will concentrate on “domestic subjects,” although it did not elaborate.

Due to investor trepidation over the lack of information on the local fiscal measures and the upcoming U.S. presidential election on Tuesday, the U.S. dollar closed at its highest level versus the Brazilian real in spot trade since May 2020 on Friday.

The measures will be presented at some time following the local elections that were held last weekend, according to government officials, although they did not specify when.

According to a Friday story in the local daily Folha de S. Paulo, Haddad would be in Europe this week, therefore it was doubtful that the administration would unveil the spending-cutting measures.

It was anticipated that Haddad would go to Europe from November 4–9, although the administration had not yet finalized his exact itinerary.
He will resume his trip plans when the time is right, the ministry stated.