Rousseff Defends Fiscal Adjustments and Says Measures Do Not Change Campaign Promises

01/28/2015 - 09h52

This Tuesday (27), after almost a month in silence, President Dilma Rousseff defended the measures taken to rebalance the public finances in 2015, during the first ministerial meeting since the start of her second term.

It was the first time the President has spoken since her inauguration.

Criticized even by members of the Workers' Party (PT) for adopting similar actions to that advocated by the opposition during the presidential campaign, Rousseff said the measures have "corrective" character and are "indispensable" to restore the country's financial health.

"The adjustments we are making are needed to keep us in the right way; to enhance opportunities, preserving the social and economic priorities (...)", said Roussef to the 39 Ministers and Vice President Michel Temer at the Granja do Torto, the President's official country residence.

During her speech, she tried to justify the economic policy measures that had been already signalized during her campaign.

"Brazilian people also voted for changes and we cannot forget that." "We will not alter a single millimetre of the project that won the elections", she added. The Workers' Party President defended the economic policies adopted in the first term.

According to Roussef, her administration managed to absorb the impacts created by the global crisis, preserving jobs and the worker's income. However, she acknowledged that those actions are no longer enough.

"We face the need to rebalance the public finances to restore economic growth as fast as possible and create conditions for a fall in inflation and interest rate in the medium term".

Folha was informed that Finance Minister Joaquim Levy said during the meeting that downgrading Brazil's credit rating is not a priority. The economic team will mainly ensure this year's fiscal target is met, which will motivate investors.

Central Bank President Alexandre Tombini said that a tight fiscal policy will easy the Bank's work on converging inflation to the centre of the target range (4.5%) until the end of 2016.

Rousseff mentioned the water crisis as one of the issues the country will face. She asked the Ministers for cooperation to assist the Federal Government and local administrations in tackling the problem, especially in the Southeast. She also said that her team is acting to ensure Brazil's energy supply.

The President also used the meeting to argue in favour of the changes announced in the payment of labour and social benefits. She denied the measures represent a reduction of labour benefits. "Labour rights are untouchable and not our administration, a workers' administration, will revoke them", she said.

Translated by JULIANA CALDERARI

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