Brazil finance minister calls Bolsonaro trade a 'hollow illusion'

BRASILIA, Oct 8 (Reuters) - ‌Brazil's Finance ​Minister ​Dario Durigan on Thursday dismissed market enthusiasm over the prospect of a ‌Flavio Bolsonaro presidency as a "cheap, hollow illusion," ⁠after assets rallied following the senator's stronger-than-expected first-round performance ‌against President Luiz Inacio ‌Lula da Silva.

In an interview with CNN Brasil, Durigan said Bolsonaro's economic blueprint echoes ​that of Argentina's President Javier Milei, accusing it of prioritizing a rapid reduction in ⁠the debt-to-GDP ratio to satisfy market demands.

Durigan said Bolsonaro's plan ​would amount to a drastic fiscal shock, stripping 200 billion reais ($39.80 billion) from ​the federal budget without ‌detailing how the cuts would be achieved.

"If, under the pretext of investing ⁠in the future, you destabilize the organism, the cost becomes very high," he said.

The minister contrasted ⁠that with Lula's economic platform, which he said would ​preserve the current administration's fiscal adjustment while potentially altering its pace.

Durigan also criticized Bolsonaro's proposal to review parts ‌of Lula's landmark consumption-tax reform, approved in late 2023 and due to ‌take effect next year, saying the legislation ⁠was well designed ‌and would generate ​productivity gains for Brazil's economy.

($1 = 5.0245 reais)

(Reporting by Marcela Ayres; Editing by Fernando ‌Cardoso)

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