Governors promise to support government in Congress
President Dilma Rousseff, government members and state governors at Palácio da Alvorada
All 27 state governors met with President Dilma Rousseff Thursday (July 30) at Palácio da Alvorada, the presidential residence, committed to supporting the government in its efforts to prevent approval of the so-called “legislative bombshells”, proposed laws in Congress that according to the government could create additional costs and undermine the fiscal adjustment policy.
“A commitment has been made to ensuring minimum governance conditions and support to get the fiscal adjustment voted and let it yield [positive] effects on the economy and restore economic growth and job creation. Support in fighting 'legislative bombshells', such as proposed changes to the Social Security factor [a parameter used for calculating pension benefits designed to discourage early retirement and reduce pension costs] that impact [the cost of] state pension systems, and support for the veto on the Judiciary pay rise,” said the governor of Santa Catarina, Raimundo Colombo, who spoke on behalf of the governors of the South states.
The governor of Maranhão, Flávio Dino, who spoke on behalf of the Amazon region states, also expressed support for the government's efforts to avoid increased spending with proposals approved in Congress. Among other things, he said the meeting served to express “solidarity and commitment to the benches regarding the 'legislative bombshells', so that no laws are voted that increase public spending without matching these costs with revenues and thus deepen the crisis in the country.”
Faced with falling revenue, the government announced an additional budget cut of $2.68 billion, coupled with a decrease in the primary surplus target (savings to pay interest on public debt) from 1.1% to 0 15% of the Gross Domestic Product. In addition to economic factors, such as a dollar hike, tensions with the president of the Chamber of Deputies, Eduardo Cunha, and the dispersion of the governing coalition, which voted contrary to the government's position on a number of occasions, could complicate the picture further.
According to Dino, the governors agreed to talk to their states' benches in Congress to prevent the approval of such proposals, which would create financial difficulties for the states as well. The governor of Paraíba, Raimundo Coutinho, speaking on behalf of the Northeast, and the governor of Goiás, Marconi Perillo, speaking for the Central-West states, reaffirmed their support.
The governor of São Paulo, Geraldo Alckmin – who is affiliated to the largest opposition party, PSDB – spoke on behalf of the Southeast, but avoided explicitly mentioning support. He urged the need to protect jobs and ensure economic growth “not only regarding the bills [in Congress], but by mitigating the Brazil cost [cost of doing business in Brazil] with cuts in public spending. But that is meant in a broader sense, on the three levels of government,” he said.
During a press conference after the meeting, Chief of Staff Aloizio Mercadante described Thursday as “a special day”, with allied and opposition governors “in dialogue toward building a positive agenda.”
According to the minister, the government should seek dialogue with Congress to create “a culture of fiscal responsibility” and avoid measures that could disrupt financial balance. “The country needs good democratic dialogue on the issues [in Congress]. We [the state and federal governments] discussed some of the president's vetoes. We need to find alternatives, because this could ruin the country's public accounts,” he argued.
Translated by Mayra Borges
Fonte: Governors promise to support government in Congress
