President Temer Launches Christmas Package for Brazilian Workers and Middle Class

12/23/2016 - 12h47

As the year ends with the Brazilian economy still in recession and facing a popularity crisis, on Thursday, December 22, President Michel Temer announced three measures aimed to appeal to the country's middle class and workers: withdrawals from inactive accounts of the Unemployment Guarantee Fund (FGTS), a reduction in credit card interest rates and an extension of the program for employment protection.

Classified as year-end treats, the initiatives were disclosed by the president himself during an official breakfast with journalists at the Alvorada Palace, the official residence of the President of Brazil.

He insisted on beginning his speech to the press by listing the measures to be carried out at the end of this year.

The government believes the measures will inject R$ 30 billion in the Brazilian economy throughout 2017, helping workers pay their debts. However, there will be no connection of the withdrawals with the payment of debts. Workers will be allowed to use the resources as they wish.

The government believes that the measure could benefit up to 10.2 million workers.

In the case of the credit cards the government also tried to adopt a measure often requested by the middle class: a decline in the interests charged by this type of credit.

The government closed agreements with banks and credit operators so that revolving credit will be paid in installments after the first maturity in 30 days.

Also aiming to end the year in better terms with the Brazilian people, President Temer gave up sending a smaller version of the labor reform through a provisional measure to the congress - the provisional measure had been criticized by workers' unions.

The provisional measure to be sent will contain only the deferment of the National Plan for Employment Protection created by the Dilma Rousseff administration which now will be called Safety-Employment Program.

In this mechanism, bosses will negotiate a reduction of 30% of the work hours with their employees.

Translated by THOMAS MUELLO

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