Jorge Gerdau: government can balance growth with fiscal adjustment
"There is no condition to leave the fiscal adjustment out.” said Jorge Gerdau.
Chairman of the Board of Directors Gerdau and founder of the Brazil Competitive Movement (MBC), Jorge Gerdau Johannpeter said on Wednesday (Jan. 6) there is no possibility for the government to abandon the fiscal adjustment measures, despite being concerned about the economic growth recovery. He spoke to reporters after meeting Finance Minister Nelson Barbosa in Brasília.
"There is no condition to leave the fiscal adjustment out.” For him, the measure is a numerical reality that has to be adopted. "Without fiscal adjustment, no problem can be solved. On the other hand, this position for growth may be taken a little bit more as a priority by Minister Nelson Barbosa," he pointed out.
According to Gerdau, Barbosa is able to do both: make the adjustment and lead the country back to growth. "Based on his work experience, the minister will be able to balance the fiscal adjustment and the economic growth. He can make an important contribution. "
Gerdau declined to comment on whether his visit indicated the executives' support to the minister after the ouster of Joaquim Levy from the Finance Ministry. According to him, there are several stances among the executives and the financial market participants. Comparing the management of Levy and Barbosa, who has just started, the executive said that "a critical step has already been taken."
"The most important thing is that Brazil and its politicians are aware of the topic of fiscal adjustment. The topic has been, in a way, a lot discussed in Brazil. Not only at the federal level but mainly among state governments that have faced equal or greater difficulty, including local governments. Without the right fiscal adjustment management, we undermine the country," he added.
Gerdau also said he plans to work together with the government to recover growth and to continue fiscal adjustment measures. Without giving details, he reported that he has spoken to the minister about several topics from Social Security to state level problems. "We have discussed global issues. It was [a meeting] to mark the beginning of the year, the beginning of the government, the beginning of Minister Nelson Barbosa's management, and to put the MBC available to work on these several topics." stated Gerdau.
Translated by Amarílis Anchieta
Fonte: Jorge Gerdau: government can balance growth with fiscal adjustment
