In recent days, the name of the Brazilian Finance Minister, Fernando Haddad, has been once again considered as a potential candidate for the Presidency of the country in the 2026 elections. The rumors gained strength as the 30th anniversary of the Real Plan approached, which was implemented on July 1, 1994, and changed Brazilian history by ending high inflation. Young people today may not fully grasp the impact of the past inflation, as prices used to rise multiple times a day during the hyperinflation era of the 1980s.
During that time, it was difficult to obtain credit, salaries quickly lost their value, and exorbitant interest rates made it challenging to manage finances. The stabilization of the economy brought about significant changes, attracting investments and offering stability for long-term planning. Since the introduction of the Real, the official inflation target has been set at 3% per year with a tolerance of 1.5% more or less.
Former Finance Minister Fernando Henrique Cardoso played a crucial role in implementing the Real Plan, with the support of President Itamar Franco’s government and other key stakeholders. The plan was a success due to various measures taken, such as introducing a new currency, fiscal and monetary reforms, and the end of ineffective policies like price freezes and savings confiscation.
Despite their political differences, Cardoso and former President Luiz Inácio Lula da Silva have contributed significantly to shaping Brazilian politics and the economy. The ongoing polarization in the country continues, with Lula and his Workers’ Party being critical of the current government led by Jair Bolsonaro.
Looking ahead to the 2026 presidential election, Fernando Haddad has indicated that he does not plan to run for office again, at least for now. The current political landscape in Brazil is characterized by polarization between different parties and ideologies, with centrist parties facing challenges in gaining traction.
As Brazil navigates through economic fluctuations and political tensions, the memory of the Real Plan remains a defining moment in the country’s history. Despite the turbulence and criticisms faced by current leaders, the progress made since the implementation of the Real Plan serves as a reminder of the importance of stability and fiscal responsibility in shaping the nation’s future.