President of Brazil, Dilma Rousseff, criticized yesterday European countries for the austerity measures adopted during the economic crisis. “Some countries have substantially reduced annual bonuses, cut wages by 30% and increased income taxes,” said Dilma Rousseff at the inauguration of an oil platform in northeastern Bahia state, warning that these austerity measures will only make things worse. Brazilian president explained that reducing labor in the European Union countries hit by the crisis, only led to increased unemployment in the region to 25%. Rousseff emphasized austerity measures adopted in Spain, where Conservative Party of the Prime Minister Mariano Rajoy has announced this week a 3% VAT increase and the sharp drop in public spending to reduce the deficit by 65 billion euros.
Unlike the EU, Brazil is trying to support the economy by lowering taxes and increasing government spending, including payment of training courses for the employee. “Our policy is not to take away the rights of employees. We want to help them consistently,” said the President of Brazil. Referring to government efforts to combat the downturn, Rousseff said that Brazil’s Central Bank this week cut the benchmark interest rate to a record low of 8%. “Government seeks to ensure performance the best it can and lead the country out the crisis by taking advantage of all opportunities that generated the crisis,” said Rousseff, adding that her country will not restrict the rights of employees, will adopt new measures to stimulate the economy and will act to prevent currency appreciation against the dollar . Because of the global financial crisis, the growth of Brazil’s economy will slow to 2% this year.
Dilma Rousseff, 63 years old, a professional economist, ran for the Workers Party and was elected on November 1, 2010, in the second round of presidential elections in Brazil, with 56% of the vote against 44% of the Social Democrat José Serra.
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