Dilma Rousseff Says Climate of Pessimism Is Affecting the Economy

07/29/2014 - 08h29

President Dilma Rousseff, seeking her reelection in October, has said that the climate of "unacceptable pessimism" that preceded the World Cup in Brazil is also affecting the economy.

Speaking at an event on Monday (28) held by Folha, UOL, SBT and the radio station Jovem Pan, at the Palácio da Alvorada, Rousseff also argued that there are still "double standards" at work in the investigation into the mensalão (a high-profile corruption case involving several Brazilian political parties as well as Rousseff's ruling Workers' Party [PT]).

She also spoke out against the recent Israeli offensive in Gaza, describing it as a "massacre".

PESSIMISM

Rousseff said that "in Brazil there is a climate of unacceptable pessimism," drawing a parallel between the World Cup and the elections later this year.

"I think the same pessimism that happened with the World Cup is happening with the economy. And in this case, it's a more serious issue, because the economy is built on confidence," she said.

"The day that the World Cup kicked off, you wrote in the newspaper that "The World Cup is ready on the pitch, but not off it," she said, recalling predictions that the tournament would be "chaos", with power cuts and problems at the airports.

"This is very serious. It's speculation against the country."

ECONOMY

Rousseff defended her economic policy, arguing that during her mandate, the country achieved its "lowest unemployment rate ever" (4.9% in April).

She also said that inflation "is not out of control", and said that this year it will remain within the limits set by the Central Bank, of 6.5% per year.

She stands by the PT's management of the economy since the financial crisis of 2008. "The crisis started in 2008, and since then the international economic situation has changed. No country has totally recovered."

However, she admitted that her predecessor, Luiz Inácio Lula da Silva, was mistaken in his assertion that the crisis would be nothing more than "a hiccup" for Brazil.

"We all got it wrong, because we had no idea about the level of turmoil that the international financial system was in," she said.

MARKETS AND ELECTIONS

Rousseff expressed her displeasure with analyses from the financial markets which have suggested her reelection would be bad for the economy, describing them as "unacceptable".

"It's unacceptable for any country to have to put up with interference from people from the financial system in their political systems and electoral processes," she said.

Rousseff is particularly displeased with the bank Santander, which sent a message to its wealthier clients with their bank statements, warning them that her reelection would spell bad news for the national economy.

"I will take a strong position with regard to that bank," Rousseff said, though she didn't go into any details. She dismissed Santander's subsequent explanation and apology as "protocol".

The bank has tried to blame internal analysts for the publication of the text.

PASADENA

While Rousseff is still trying to fend of accusations of financial mismanagement regarding the purchase of an oil refinery in Pasadena, Texas, by Petrobras, she says she has not been "worn down" by the incident.

At the time of the deal, Rousseff was head of the company's administrative council.

"I don't think I've been worn down by this issue. To the contrary, I think that Pasadena shows that my conduct in public office has always been decent," she said, citing, in her defense, her exclusion from an investigation into the affair by the Federal Court of Accounts.

The Court hopes to recover US$ 792 million for the public coffers.

MENSALÃO

When asked about the mensalão, Rousseff said that double standards have been applied, referring to the mensalão mineiro, a separate corruption scandal involving her political rivals the PSDB.

"It's a clear case of double standards," she said. "Why? The mensalão has been investigated, but the mensalão mineiro, no."

Rousseff implied that the investigation into the mensalão mineiro has been shelved for political reasons, but she stopped short of accusing the ex-president Fernando Henrique Cardoso of acting in favor of his political allies in 1998, the year the scandal broke.

The mensalão was the biggest trial in Supreme Court history. Twenty-five defendants were convicted of buying votes in congress during Lula's first presidential term, among them, several senior figures in the PT.

The PSDB's mensalão mineiro was an alleged scheme of illegal donations, involving both public and private money, for the election campaign of Eduardo Azeredo, who was running for governor in the state of Minas Gerais in 1998.

GAZA CONFLICT

Rousseff expressed her disappointment with recent Israeli criticisms of Brazil.

Last week, a spokesman for the Israeli Foreign Ministry called Brazil "a diplomatic dwarf", after the Brazilian Foreign Ministry condemned Israel for its "disproportional" use of force in the Gaza Strip.

Rousseff repeated the term on Saturday, and went even further, arguing that the Israeli offensive amounts to a "massacre."

She said that the UN Security Council's request for a ceasefire is "extremely welcome". However, she also reiterated that there would be no break in relations between Brazil and Israel.

Translated by TOM GATEHOUSE

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