Brazilian President Slams European Nations’ Austerity Measures
Rio de Janeiro, July 14 (Xinhua-RHC) -- Brazilian President Dilma Rousseff has criticized some European countries for their austerity measures in tackling the economic crisis.
Speaking at the inauguration of an oil platform in the north-eastern state of Bahia, Rousseff said: “Several countries are slashing (year-end bonuses), cutting the salary of councillors by 30 percent, and raising taxes;” and warned that these belt-tightening measures would only make things worse.
Rousseff said cutting workforce in the debt-ridden European Union (EU) only served to increase the unemployment rate by 25 percent in the region.
The Brazilian stateswoman singled out Spain for its utmost austerity measures, as the conservative government of Prime Minister Mariano Rajoy this week announced a whopping value added tax increase of 3 percent and drastic cuts in public spending to reduce the fiscal deficit by 65 billion euros (about 78 billion dollars).
In contrast to the EU, Brazil is trying to boost its economy by lowering taxes and raising government spending, including the payment for training courses for employees.
In addition, President Rousseff made it clear that resource-rich Brazil will not restrict any labor rights, will boost stimulus measures and act to prevent the national currency, the real, from appreciating against the dollar as this would harm the already fragile industrial sector.