14.09.2016

Brazil launches privatisation plan to fix economy

400The new Brazilian government headed by Michel Temer announced a plan of economic reforms to groped to revive the economy hit by the crisis without increasing public spending.

Temer announced a privatization plan: from the sale of four airports and two harbours to a series of projects such as the construction of new buildings and roads up to the creation of new mines to be entrusted to private companies. "The State can not do everything," the president said during the presentation of the reforms.

Privatisation is the first phase of a program of reforms within the project "Crescer" (will grow) announced by the president in order to increase growth and employment through a more policy oriented towards the market and investments to counter one of the worst recessions of the last eighty years without affecting the state coffers, already burdened with the interest you pay on the high public debt.

Brazil's economy in 2015 contracted by 3.8% and according to the forecast of the Organization for Economic Cooperation and Development is expected to undergo a further reduction of 4.3%. Temer has also announced plans to reform the pension system and market labor and open up the country to foreign investment and private companies.

For example, he will approve a law that allows the state oil company Petrobras to have a maximum of 30 percent participation in the new discovered fields. The contracts will be written in English and Portuguese to facilitate investments of foreign companies.

However, after the last 13 years of government of the Workers Party, which has reduced inequalities in the country through increased public expenditure, many Brazilians worry Temer's policies, who could not get in the three months interim confidence of the majority of the population presidency, accomplices also some bad choices in the choice of the government team, with ministers accused in the past of corruption and collusion with lobbyists.

 


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