A day after President Lula signed into law the State Debt Payment Program (PROPAG) with key vetoes, tensions between the federal government and state administrations escalated on Wednesday (15). While the National Treasury defended the program, opposition governors sharply criticized the changes.
The harshest criticism came from governors Cláudio Castro (Rio de Janeiro), Romeu Zema (Minas Gerais), and Eduardo Leite (Rio Grande do Sul). Leading opposition states and some of Brazil’s largest debtors, these governors oversee administrations under the Fiscal Recovery Regime (RRF), established in 2017 to assist states in severe financial distress.
According to the presidency, Mr. Lula vetoed provisions that could impact the…
