MercoPress. South Atlantic News Agency

Brazilian president calls for European ‘greater understanding’ of the Argentine situation

Higgins and Rousseff had a 90 minutes meeting at the Planalto Palace

President Dilma Rousseff, meeting with her Irish peer Michael D. Higgins said the global crisis has had a greater impact on Argentina than on Brazil, which has a stronger industrial base, and called for a better understanding of President Cristina Fernandez administration.

“Global turbulences have been more negative for Argentine manufacturing, while Brazil has managed to keep its industrial structure more diversified”, said Ms Rousseff during talks with the visiting Irish president.

She added that Argentina, the second largest economy in South America, has seen its manufacturing sector weaken with the global situation and “this has further deteriorated because the country is cut off from international money markets”, according to a report published in the financial Sao Paulo newspaper Valor Economico.

The Brazilian president also emphasized that Brussels needs to have greater “understanding” towards the government of president Cristina Fernandez which is criticized precisely by the EU for its protectionist policies and “are considered an obstacle to keep advancing in reaching a trade and cooperation agreement between Mercosur and the European Union”.

Nevertheless Rousseff told her Irish peer she was optimistic that finally the EU and Mercosur could reach such an agreement but also underlined that the EU has its own challenges which is to ensure the unity of the group threatened by division as a result of the Euro crisis. 

“In Mercosur we strongly desire the Euro zone remains united and survives the split threats that have surfaced because of the ongoing crisis”, said Rousseff, who added that Brazil disfavoured any suggestion of the Euro zone’s stronger economies such as Germany leaving the currency and “wouldn’t see this as a development that would be viable or welcome”.

Rousseff told Higgins “that the Europe in which she found inspiration was a Europe that had protected labour rights, that had social policy and that was going in the direction of inclusion”.

According to the report much of the 90-minute meeting at the Planalto presidential palace was spent discussing the European crisis, during which Higgins outlined how bank debt had impacted on Ireland’s fiscal position.

Brazil’s president criticised the G20’s response to the crisis, which, she said “has not come to terms with the real issues in Europe”.

Mrs Rousseff said she believed emphasis changes will have to be made to the current policy of austerity, especially in relation to youth unemployment, to win support from European voters for the changes necessary to European treaties in order for the currency to survive.