ECONOMY
Lula piles on measures to create a feel-good economy
President Lula hugs Finance Minister Dario Durigan during the rollout of a new debt-relief program. Photo: Ricardo Stuckert/PR
President Luiz Inácio Lula da Silva spent Monday doing what incumbents do best: trying to make voters feel good about the economy. His government unveiled a program offering cheaper loans to Brazilians who pay their bills on time yet still bleed through high interests, and sent Congress a bill widening the revenue ceiling for the country's micro-entrepreneurs (known as MEIs). Both arrive barely three months before October's election, which Lula intends to win.
👉 Why it matters. Almost every Brazilian feels squeezed: a 2025 survey commissioned by Anbima, the national association of capital markets, found 47% reporting high financial stress and another 48% reporting moderate stress, leaving only about 5% relatively at ease. Nearly half said they overwork simply to cover the bills. A government that can make those numbers feel lighter — even briefly — holds a formidable asset.
This new program is a sequel to a May program for defaulters, which has renegotiated BRL 17.5 billion (USD 3.38b) in debt for 7.5 million families at an average 80% discount.
The new phase targets…
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