MercoPress. South Atlantic News Agency

Aznar throws Spain's support behind Lula.

Spanish Prime Minister Jose Maria Aznar on Wednesday expressed support for the economic reforms sought by Brazilian President Luiz Inacio Lula da Silva, and also voiced sympathy for Brazil's aspirations to gain a permanent seat on the U.N. Security Council.

Aznar said this at a joint press conference with the Brazilian president at Itamaraty Palace en Brasilia, where both announced the signing next month of a strategic alliance agreement between Spain and Brazil.

The Spanish prime minister praised the reform process which Lula has undertaken which, he said, translated into increasing confidence and credibility in Brazil and its future prospects.

"We support Lula's process and have done so since the very first moment," Aznar added, noting Spain's interest in giving priority to relations between the countries and assigning them a strategic importance.

Aznar said that Spain had been working on this in recent months, and expected these efforts to lead to the signing of a strategic alliance agreement between the countries in November.

The document, he added, will be signed at next month's Ibero-American Summit in Santa Cruz, Bolivia.

Aznar also spoke about the need to reform international institutions such as the United Nations, and to bring about changes with "common sense and decisiveness" on matters such as the composition of the Security Council and the General Assembly, to make them more effective in the preservation of world stability.

Aznar said that Spain was aware of Brazil's desire to join the United States, Russia, China, France and Britain as a permanent member of the Security Council. "And we deeply sympathize with this logical ambition of Brazil," he added.

Aznar spoke about Spain's efforts to strengthen links between the EU and Mercosur in the short term, and indeed, the Spanish leader's visit comes as the South American giant redirects its vision increasingly toward Europe and away from the United States.

Lula thanked Aznar for supporting his policies, underscoring the importance of relations between the two countries; relations whom he said were currently particularly strong. Lula pointed out that Spain was the second major foreign investor in Brazil and that he hoped Madrid's investments would increase in keeping with the growing confidence inspired by his country. He also said he expected major Brazilian investment in Spain in the near future.

Also, Lula referred to the significance of rapprochement of Latin America and the Caribbean with the EU, and of the negotiations between the EU and Mercosur, the regional trade bloc that groups Brazil with Argentina, Paraguay and Uruguay.

Lula also praised as a token of solidarity the fact that the Ibero-American Summit would still be held in Santa Cruz, Bolivia, despite the recent violent unrest which left some 70 dead and led to the appointment of Carlos Mesa as the country's new president.