“Bitter remedies” necessary to lead Brazil out of recession, Temer tells senator

In an address at a dinner meeting at the presidential Alvorada Palace, President Michel Temer urged his Senate allies to approve a constitution amendment bill to cap government spending for 20 years, claiming the country will not emerge from the “deep recession” with “sweet measures”.

Temer said the country should not treat this year's $49.73 billion deficit projection and $40.66 billion deficit expected for 2017 as something ordinary.

“The first thing to do is lead this country out of recession. Only then will it start growing. And then will growth lead to employment. So let's not have the illusion that the recession can be fought simply with sweet measures—we need bitter remedies. These remedies are aimed at the future rather than the present,” the president said.

Paying compliments to Congress, who he said rules the country along with the Presidency, Temer said that once the constitution amendment for fiscal austerity (PEC 55) is approved, a pension and a labor reform will also be needed.

“In other countries, social security rules completely different from ours have already been approved. Next, we need to change our labor provisions, which the Supreme Court has already begun to do by ruling that collective bargaining agreements should prevail over legislation,” the president said.

Protest

Beginning in early evening, about 80 people, according to the Federal District Military Police, blocked off one of the roads leading to Alvorada Palace. Protesting against the austerity amendment, as well as a temporary decree to reform secondary education and a bill against what its sponsors call “political indoctrination” at schools, the demonstrators were trying to prevent Temer's guests from gaining access to Alvorada Palace. Police and presidential security set up a fence to keep protesters away from the presidential palace.

Translated by Mayra Borges