Rui Costa attacks Campos Neto and says that BC does not need a new fiscal framework to cut laws

On the day that the Monetary Policy Committee (Copom) will announce the new basic legal tax, the Minister of the Civil House, Rui Costa, harshly criticized the President of the Central Bank, Roberto Campos Neto, and insinuated that he is not independent in relation to to the financial market.

“What the president of BC is doing is a disservice to the Brazilian nation”, says Costa, in conversation with a group of journalists, in the Palácio do Planalto. “The economy is suffocated, or commerce is suffocated. I can’t explain BC’s position of insisting on such an exorbitant tax”.

The own minister of the Fazenda, Fernando Haddad, had indicated that he would present a proposal for the new fiscal arcabouço before the Copom meeting. This movement was expected as a way of giving Copom more comfort to indicate, at least, an eventual cut from Selic in the following meetings — in May and June.

Costa, however, preferred to disassociate the two years. “He [Campos Neto] It does not require a new fiscal framework. I apologize, it’s not precise”, affirmed the Minister of the Civil House, considering that inflation has fallen since the BC raised the Selic to 13.75% and that Brazil has one of the highest real taxes in the world.

“Or what justifies being with the same dose of remedy? [O país] He was with a fever of 40°, today he is with a fever of 36.7°”, he compared.

Next, Costa mentioned the restrictions imposed by State Law for the nomination of politicians or party leaders and cited the vote of Minister Ricardo Lewandowski, of the Federal Supreme Court (STF), against the current quarantine imposed by legislation. The minister passed, then, to alternate comments on the State Law and on the independence of BC.

“Every time that an independent public institution is held, people have to ask themselves: independent of what and of what?”, he asked. “In the countries where this is adopted, it has been taken to the letter: independent of the government and independent of the market.”

Costa describes seeing cases in which executives are from a commercial bank and, “sometimes in the interval of a single day”, assume a function of directorship in BC. “It is not natural, it is not correct”, he affirmed.

He preferred not to answer if it was specifically about Campos Neto and he returned to comment on the State Law case. “Everyone is a natural, but an ex-governor can assume public office, in the direction of the state, still can’t?”, he added.

Despite the minister’s questioning, BC directors are Saturdays by the Federal Senate and precisely their indications — issued by the President of the Republic — approved by the senators in plenary.

Costa did not confirm, or deny, the names of Rodolfo Fróes and Rodrigo Monteiro for the two vague ones currently open in the BC directorate. He only said that President Luiz Inácio Lula da Silva “received and ratified” the names suggested by Haddad.