Short-term practical consequences for economic policy
The immediate agenda includes key measures in health, education, and social protection, with provisions for controlling current spending and adjusting lower-priority programs. The tone of the speech sought to convey that, even with limitations, there is room to implement visible changes in daily life.
The president of the Broad Front, Fernando Pereira, harshly criticized the previous government's management and stated that his coalition "had to govern in a country with serious restrictions" due to "the terrible administration of Luis Lacalle Pou." The statement was made during an event at the Drivers' Protection Center, as part of the Broad Front's tour to present and explain the 2025 Budget to the public.
Pereira admitted that the proposed budget won't solve all of the country's problems, but argued that it aims to repair the damage inherited and prioritize measures with a direct impact on the population. In his presentation, he argued that the magnitude of a budget is measured by how much it changes people's lives.
The president of the Front explained that the administration took office with a debt that, according to his assessment, exceeds $1 billion and includes liabilities accrued from international litigation. He cited among the most problematic cases the seizure of state accounts in Luxembourg linked to Larah's lawsuit in the Pluna case. These factors, he said, limit the government's maneuverability and determine its fiscal priorities .
Faced with this scenario, Pereira defended the design of the 2025 Budget as a pragmatic response: not a comprehensive solution, but rather a package of measures that seeks to protect the most vulnerable sectors without compromising fiscal sustainability. He also stated that the required corrections involve reviewing decisions made by the previous administration.
In his speech, he also maintained that a left-wing government must govern both with a tailwind and in difficult times, and that at this stage it had to face unexpected "restrictions." This characterization of the macroeconomic situation was repeated throughout the speech to justify prioritizing social policies and targeted adjustments. The message sought to affirm that, despite the limitations, the Front intends to advance reforms with planning and calm.
The budget presentation also sought to clear up doubts about the tax burden: the Front maintained that this is a readjustment, not an indiscriminate tax increase, and defended measures aimed at balancing the competitiveness of local commerce and fiscal justice.
2025 Budget and the direct accusation against Lacalle Pou
Ereira challenged the previous government for decisions that, in his assessment, left a weakened fiscal system and obligations that today limit public policies. The reference to the debt of more than 1 billion euros and the embargo in Luxembourg was used to illustrate the seriousness of the situation he inherited.
