# Lula's Government Coordinator Endorses Lara Resende's Economic Plan

> José Sérgio Gabrielli backs Lara Resende's proposal for a national fiscal-monetary council to tackle high interest rates.
- Title: Lula's Government Coordinator Endorses Lara Resende's…
- Summary: José Sérgio Gabrielli backs Lara Resende's proposal for a national fiscal-monetary council to tackle high interest rates. Lula's government coordinator…
- Keywords: jose sergio gabrielli, andre lara resende, lula, conselho fiscal e monetário nacional, selic, taxa de juros, ministro da fazenda, dario durigan, política fiscal, governo, news, brazil
- Source: Poder360 — https://poder360.com.br/poder-economia/coordenador-do-programa-de-governo-de-lula-endossa-lara-resende
- Author: PODER360
- Published: 2026-11-02T21:51:21+00:00
- Read time: 2 min
- Topics: jose sergio gabrielli, andre lara resende, lula, conselho fiscal e monetário nacional, selic, taxa de juros, ministro da fazenda, dario durigan, política fiscal, governo, news, brazil
## Lula's Government Coordinator Endorses Plan
José Sérgio Gabrielli, coordinator of Lula's re-election campaign government program, endorses André Lara Resende's proposal for a national fiscal-monetary council.

> Política fiscal para o fim de 2026 e para 2027
## Market Reaction to Proposal
The financial market reacted negatively to Lara Resende's proposal, and the Minister of Finance, Dario Durigan, publicly rejected it the day before.
## Proposal Details
Lara Resende's plan includes creating a broader structure than the current CMN to set joint fiscal and monetary targets for 4 to 5 years.
## Interest Rate Plan
The proposal calls for a gradual reduction of Selic to 7.5% over 12 months, followed by stabilization at 3% to 5.5% annually.
## High Interest Rates Cause Debt Growth
Gabrielli states that high interest rates are the main driver behind the expansion of public debt, with the government debt reaching 82.9% of GDP in September.
## Debt Levels Not Alarmist
The liquid debt is at 69.3% of GDP, 90% of the debt is in national currency, and the country has foreign exchange reserves.
## Inflation Sources
Gabrielli attributes inflation pressures to external factors, not excessive domestic demand, citing the dollar's rise and B3's decline after the election.
## No Impact on Social Programs
Gabrielli claims that potential spending cuts will not affect the real minimum wage, BPC benefits, Bolsa Família transfers, or constitutional health and education floors.
## Tax Reform Focus
Gabrielli advocates for revising inefficient tax benefits and recovering credits from large taxpayers.
## Gabrielli's Fiscal View
Gabrielli argues that there is no direct correlation between primary fiscal results and interest rates in Brazil over the past decades.
## Interest Rate Reduction Strategy
Gabrielli supports a progressive adjustment of spending and revenue without imposing austerity on voters.
## Market Financial Position
The financial market positions itself for Flávio Bolsonaro's victory, influencing the B3's decline after the election.
## Government Debt Context
The government debt reached 82.9% of GDP in September, with the liquid debt at 69.3% of GDP.
## Next Steps
The proposal aims to stabilize interest rates at 3% to 5.5% annually after a 12-month reduction to 7.5%.
## Key takeaway

Lula's government coordinator endorses Lara Resende's plan to create a national fiscal-monetary council to lower interest rates without austerity.