Lula’s economic team prepares fiscal package to calm markets

The significance here is procedural as much as fiscal: a package sent to Congress before next week is a credibility test for Lula's economic team, since the stated aim is to show how targets will be met rather than to announce a one-off cut. The measures matter most to holders of Brazilian risk, who have been pricing doubt about the framework, and to lawmakers whose adjustments for 2027 are still being negotiated. Whether the submitted proposal matches the 50-60 billion reais range under discussion, and whether it clears Congress intact, is the open question.