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Montevideo, July 16th 2019 - 07:10 UTC

 

 

Rousseff again confirms Levy as (austerity) minister despite complaints from the ruling party

Tuesday, November 17th 2015 - 09:19 UTC
Full article 6 comments
”I think the president of the PT (Rui Falcao) can have whatever opinion he wishes, but that is not the opinion of the government,” said Rousseff  ”I think the president of the PT (Rui Falcao) can have whatever opinion he wishes, but that is not the opinion of the government,” said Rousseff
“If I tell you that is not the opinion of the government, then Levy stays.” Rousseff said “if he stays, it's because we agree with his policies.” “If I tell you that is not the opinion of the government, then Levy stays.” Rousseff said “if he stays, it's because we agree with his policies.”
According to Brazilian media Lula is also pressing for Levy's dismissal, but Rousseff denied it saying ”he (Lula) never asked me for anything.” According to Brazilian media Lula is also pressing for Levy's dismissal, but Rousseff denied it saying ”he (Lula) never asked me for anything.”

Brazilian President Dilma Rousseff jumped to the defense of her embattled finance minister saying she would not be pressured into sacking him. Rousseff, fighting to save her second term presidency from threatened impeachment proceedings, said she was ignoring suggestions by the head of her own Workers' Party (PT) that Joaquim Levy should be dismissed.

 ”I think the president of the PT (Rui Falcao) can have whatever opinion he wishes, but that is not the opinion of the government,“ Rousseff was quoted as saying by Brazil's Folha newspaper during a visit to Sweden.

”If I tell you that is not the opinion of the government, then Levy stays.“ Further backing Levy, Rousseff said ”if he stays, it's because we agree with his policies.“

Levy is under pressure over Brazil's recession, mounting inflation and unemployment and the government's inability to pass new austerity measures in a hostile Congress. Some in the populist PT oppose policies that they say will worsen the economic situation for Brazil's poor.

Among those urging Rousseff to sack Levy, according to Brazilian media, is Rousseff's mentor and predecessor in the presidency, Lula da Silva. Rousseff also dismissed this, saying ”he never asked me for anything.”

However Lula da Silva did effectively invite Henrique Meirelles, to return to active politics and help with the current financial situation. Meirelles was central bank chairman during the eight years of Lula da Silva, and a very orthodox economist and banker at that.

Rumors briefly flew on Friday that Levy was going to hand in his resignation. A similar rumor blew up in September, highlighting the turmoil in Rousseff's government.

Rousseff is not only struggling with political opponents in Congress, but hoping to reassure financial markets following a credit downgrade by Standard & Poor's last month to junk status and another downgrade this week, to just above junk, by Fitch Ratings.

Categories: Economy, Politics, Brazil.

Top Comments

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  • Brasileiro

    Brazil has to give a macroeconomic shock:

    1 - Reduce interest (SELIC) dramatically to 4% pa and stop talking about fiscal adjustment;

    2 - Taxing the foreign speculative capital inflows in the stock market by 10% to prevent the appreciation of the Real.

    Because with the reduction of the Selic credit back to consumption, unemployment would be reduced, the tax revenue would increase. In addition, Brazilian inflation is not demand, but prices administered by the government that have been dammed in recent years.

    Stock markets are expected to grow naturally with productivity gains and operating results of companies that have listed shares. Companies that have valued stocks artificially by speculative capital inflows are subject to the seesaw of the financial market. This is bad!

    “ O maior inimigo do capital é o próprio capital!”

    Nov 17th, 2015 - 09:49 am 0
  • LatAmBurgher

    Productivity gains... in a country where people see less and less of a return on their investments, both in terms of labor and capital, in the past four years... carai, estou morrendo de rir!

    Nov 17th, 2015 - 01:00 pm 0
  • Jack Bauer

    The more radical sectors of the PT, as well as the 9-fingered toad , want to get rid of Levy and replace him with Meirelles....they don't understand that 'austerity' is the ONLY thing that'll get Brazil back on track, even though so far, it's been a farce. To make a difference, Meirelles would have to cut far deeper into Government spending, or does the damned PT want him because they know he will open the flood gates and allow irresponsible spending to continue ?
    On the other hand, it was good to see fat Ass tell Lula to fuck off ; after all, the asshole had two terms, and is the idiot who started Brazil on the downward spiral , and not satisfied, keeps on poking his fucking nose where it's not wanted.

    As to the brasshole's comments @1 :
    1 - the SELIC rate is decided by the COPOM - the Central bank - and controlled by whom ? by the fat Dilma ...besides, reducing the SELIC rate, would make credit explode, along with the prices, causing an even larger increase in the cost of living...and compounding the crisis.

    2 - If he doesn't want the Real to appreciate, this can only mean he wants it to depreciate, until it's not worth the paper it's printed on ; Regarding foreign capital, coming in for speculative purposes only, it's only fair that it be taxed upon repatriation - as I think it already is, but perhaps not enough - but foreign capital coming in as the result of productive investments and exports, should be incentivated. With more foreign currency available, the cheaper it gets and the Real can regain some of its buying power instead of going further down the drain.

    As far as the rest is concerned, expansion, based on credit alone, just causes 'bubbles', as the results of too much easy credit over the past 5 years has proven ; loads of people today, can no longer pay their bills - just take a look at the record number of cars, and homes, being returned to the banks.

    Nov 17th, 2015 - 09:21 pm 0
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