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Indeed, they might be following different policies, but first they had to get the creditors boot out of their neck. And they decided to do it the "creditor-friendly" way.
In any case, in Southern Europe, I think both avenues are closed: "creditor-friendly" = mathematically impossible. "creditor-unfriendly" = disaster consequences (as I bet there will be political will to make any country that follows that path an "example").
Also, while they did have to get the creditors off their necks, the whole of the last 10 years (and a bit) have been spent under a Lula presidency or that of her formet chief of cabinet. Whose inclinations are totally at odds with the EU elites.
So, it feels a bit rich to give the fiscal consolidation in the first year of his presidency credit for the entirety of the performance, and none to a move towards more left-wing policies and lower inequalities (not saying that there are no other factors). Especially since Argentina and Venezuela did quite decently over the period as well.
Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
Lula... urged Portuguese policymakers to reject any austerity measures. "The IMF won't resolve Portugal's problems, like it didn't solve Brazil's" he told Portuguese reporters on Monday, making the point that accepting an EU-IMF bailout would results in stricter austerity measures which would hamper growth, according to The Washington Post.
But that is not the issue. The issue is how did they get rid of it? They opted for paying. Super-avits of 4.5% year over year.
Brazil's model is not one of "sticking the finger to creditors", au contraire.
I am not saying that it is a good model to follow (I actually think it is an IMPOSSIBLE model to follow).
But in name of getting the history correct (my only point here, nothing more), the Brazilian case is not one of defaulting or anything like that.
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