Long wait for approving reforms could lead to drastic measures
"These proposals being outlined will set gradual changes, will establish transition rules. We are still in a situation in which we can address these problems in a predictable and gradual way, smoothly, without surprises," said Barbosa. 
Long wait for approving structural economic reforms may force the government to adopt "drastic" measures very soon in order to control the ailing Brazilian economy, said Thursday (Mar. 10) Finance Minister Nelson Barbosa during a seminar of the National Treasury, in São Paulo.
The government is formulating a tax reform proposal at the moment, in order to cut mandatory government spending and create more space for controling public expenditure, and is also formulating another proposal to set out new retirement rules and overturn the Social Security deficit in mid-term. Both proposals shall be submitted to Congress by the end of April, according to the minister.
"These proposals being outlined will set gradual changes, will establish transition rules. We are still in a situation in which we can address these problems in a predictable and gradual way, smoothly, without surprises," said Barbosa. However, "postponing the date for addressing these problems will make inevitable to adopt more drastic solutions in a very near future, which is not good for anyone," he declared.
Resistances
The proposals, however, run into resistance from parties in the governing coalition, including the Workers' Party (PT). They defend the need for short-term measures to stimulate the economy and quickly keep down the rising unemployment.
PT lawmarkers have already declared to be against a pension reform at the moment, when there is a political polarization in the country, when President Dilma Rousseff's impeachment request is being discussed in Congress and she needs to be backed by trade unions, which are among her main supporters .
Minister Barbosa told reporters that he is working to overcome these resistances and is discussing with several leaders, not only of PT, but of the whole Congress.
"Our proposal, for example, gathers items of the agenda of the government's main supporting parties. There are also short-term actions to stabilize income and employment rates, to keep down the rising unemployment rate, as proposed by several PT leaders. And we also plan to adopt structural reforms to reduce budget constraints and control spending, as several leaders of the PMDB (Brazilian Democratic Movement Party) proposed," said the minister. He further declared: "According to our projections, we expect the economy to stabilize in the third quarter and resume growth in the fourth quarter."
Translated by Amarílis Anchieta
Fonte: Long wait for approving reforms could lead to drastic measures
