Labor reform to boost economic recovery, says Brazil Finance minister

The labor reform will revolutionize the Brazilian economy and bolster competitiveness in the country, said Finance Minister Henrique Meirelles Thursday (Jul 13). The changes will help pull the country out of recession in a scenario in which other overhauls are being discussed, he added.

“The legislation can't keep society frozen. Regulation is necessary in order for society to make further progress and grow. Brazil is making key changes in labor. We're finishing not just fiscal adjustments, which are crucial to the economy, but also implementing reforms so that we can work more productively and generate more jobs and income for Brazilian workers,” Meirelles said.

The finance minister reiterated that the government is working to pass the pension reform and is committed to fiscal adjustment and efforts aimed at cutting red tape. In his view, all structural overhauls will improve the country's productivity. “We have reforms in every field: debureaucratization, the credit market, the way taxes are paid—changes that make an impact on citizens' everyday lives and the economy. This is what happens today, with as the economy recovers,” he said.

Translated by Fabrício Ferreira