Overly restrictive fiscal measures are unlikely to solve the European Union's debt crisis, Brazilian President Dilma Rousseff said on Monday in Brussels in the sidelines of the V strategic meeting between the European Union and Brazil.
Brazilian President Dilma Rousseff signed a bill exempting defence companies from taxes for five years. The measure is geared to prop the defence industry and reduce the share of imported equipment for the armed forces.
The Mercosur-EU trade agreement is one of several issues Brazilian president Dilma Rousseff will be addressing Monday in Brussels during the fifth Brazil-EU summit. Rousseff begins in Belgium an official visit to Europe that also includes Turkey and Bulgaria.
Brazilian President Dilma Rousseff made on Friday her strongest call yet for the central bank to continue cutting borrowing costs. At an event in Sao Paulo she said it was “inadmissible” for policy makers not to take into account the possibility of a recession and even a depression in the global economy.
Brazil’s budget surplus before interest payments narrowed in August to its lowest in nine months even as the central bank relies on fiscal policy to help fight the fastest inflation in six years.
A Uruguayan government delegation will begin talks on Tuesday in Brazil to address the latest restrictions imposed by Mercosur largest member and which threaten several manufacturing sectors, particularly the auto industry, said Foreign Affairs minister Luis Almagro.
Speaking at the UN General Assembly, Brazilian President Dilma Rousseff warned that a full blown economic crisis could be devastating for emerging countries as well as for the world’s largest economies. She added that the global financial situation could cause a “serious rupture.”
The world crisis was the main issue addressed by Brazilian president Dilma Rousseff during the bilateral meetings with US President Barack Obama and later with her peer Mexico’s Felipe Calderon in New York.
Uruguayan president Jose Mujica admitted a certain ‘stinging feeling’ following the recent Brazilian decision to increase import taxes on vehicles by 30%, which could also have an impact on Mercosur partners.
A total of 594 brooms representing Brazil’s 81 senators and 513 members of the Lower House have been planted in the famous Copacabana beach of Rio do Janeiro by a non government organization demanding for action against rampant corruption.