Temer once again advocates reforms, says “there is no plan B”

In an address delivered at the Planalto presidential palace, President Michel Temer said the reforms brought forward by the government are the “most ambitious” seen in recent times and that there is no other way to restoring growth in the country. “There is no plan B. We must move ahead. Nothing will destroy us—neither us nor or ministers,” he declared.

Overhauls are under deliberation in Congress on the country's tax, pension, and labor systems.

On setting a cap on public spending, Temer said that bringing revenues close to expenses will not be a quick process, “Maybe tax collection will be near spending ten years from now,” he said during the ceremony in which he signed the law allowing traders to charge different prices depending on whether purchases are made in cash or on credit.

Fiscal responsibility is the “fundamental pillar” of Brazilian economy, the president argued, adding that the ceiling for public spending was the first step. “Few people understood what we did with the spending cap. It has a 20-year term, and can be revised after ten years. I did it because the deficit in public accounts is too high in Brazil, and it will take some time before the current goal is met,” he stated.

Temer said his administration aims to do what is often impossible due to electoral issues. “We're having this transition so that whoever comes later may find Brazil back on track,” he said.

New law

Finance Minister Meirelles, attending the ceremony, said the new law will increase legal security, as discounts for in-cash payments will no longer be a matter of dispute.

According to Onório Pinheiro, head of the National Confederation of Shopkeepers (CNDL), 74% of Brazilians have the habit of asking for discounts when paying in cash, and 38% have realized companies are already offering such discounts. “Also, 77% of businessmen see the change as positive for trade in Brazil.”

Translated by Fabrício Ferreira