Brazil's Temer says has no "Plan B" for fiscal reform

Record ID: 877377

  • Title: Brazil's Temer says has no "Plan B" for fiscal reform
  • Date: 30th May 2017
  • Summary: TEMER SHAKING HANDS WITH SPEAKERS
  • Embargoed: 13th June 2017 17:58
  • Keywords: Temer Brazil populism corruptions
  • Location: SAO PAULO, BRAZIL
  • City: SAO PAULO, BRAZIL
  • Country: Brazil
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA0036J16WQR
  • Aspect Ratio: 16:9
  • Story Text: Brazil's President Michel Temer said on Tuesday (May 30) that his government has no alternative "Plan B" for its drive to bring the budget deficit under control, while improving economic indicators will allow interest rates to fall further.
    Speaking at an investment forum, Temer said his government has not given up on its commitment to fiscal reforms, dismissing speculation that less austere measures are being considered in the face of a political crisis fuelled by corruption allegations.
    He said the country had been through moments and measures which were "simply populist", and vowed to prevent Brazil from returning to this path.
    Brazilian Finance Minister Henrique Meirelles said President Michel Temer's government will remain in power despite the leader coming under a corruption investigation in a growing political graft scandal.
    Meirelles also said the government maintains its commitment to passing an ambitious economic reform agenda, telling reporters that he does not see any strong or relevant political figures seeking to reverse the proposed measures on changing labour and pension laws.
    Temer is resisting calls to resign or face impeachment proceedings after the top court last week approved a corruption probe on the back of plea-bargain testimony indicating he condoned bribing a witness in the sprawling "Car Wash" graft probe, and that he had received 15 million reais (4.59 million U.S. dollars) in bribes.
    An electoral court is also expected to rule on June 8 or 9 on whether to annul the 2014 re-election of former President Dilma Rousseff and her then running mate Temer on accusations the ticket was funded by illegal campaign donations.
    If Temer is ousted, Meirelles's name has been floated as a favourite for investors who see him as the best bet to keep Brazil's incipient recovery on track.
    A recent opinion poll showed the Temer administration's approval rating has sunk to 5 percent, making it Brazil's most unpopular government since the end of military rule three decades ago.
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