Delfim: Dilma broke the ice with the business community.

247 - Former Finance Minister and economist Antonio Delfim Netto sees clear signs of a closer relationship between the government and the private sector. According to him, the proof of this is the success in the airport auctions. Read the article published in Folha de S.Paulo:

Clear signs

In recent weeks we have had some clear signs that the government has modified its discourse regarding the private sector. These will be very important in reducing the uncertainties that have been inhibiting the acceleration of the economic growth rate.

1) The concentration of discussions on concessions in the Civil House and the Ministry of Finance showed that the healthy objective of "moderate tariffs" is a reasonable concern of the government and not an idiosyncrasy "against the private sector," as some suggested. The government understood that it can only succeed if the executive projects are well-done and the auctions well-structured, as it has begun to do.

2) In her excellent speech at the opening of the 14th Congress of the Federation of Commercial Associations of the State of São Paulo, held in Campinas on the 18th, the president said that "the future will be ours if we realize that there is no opposition between the government and businesspeople. There is a prospect of cooperation. Above all, there is the political will of the government to cooperate with all small, medium and large business owners." Following this, Minister Guilherme Afif Domingos – in her presence – gave an example of the government's willingness to reduce some of the bureaucratic obstacles that hinder us.

3) The Finance Minister withdrew his support for the bill currently in the Senate which, if not in letter, at least in "spirit," could pave the way for a violation of the Fiscal Responsibility Law. The political cost of this measure is not small, as the biggest beneficiary would be the municipality of São Paulo, currently controlled by the PT (Workers' Party). Finally, but no less important:

4) The president's initiative, which encouraged key leaders in the National Congress to sign a "Fiscal Responsibility Pact" to not put any bill on the agenda that increases spending or reduces revenue, including those she had supported when circumstances were different. This is an effective preventive measure against the threat of a reduction in our "rating." There is some skepticism regarding it among those who do not believe that a person's word is their bond in Congress. The government and its leaders know that disregarding it could be a strong ingredient in destroying the credibility of fiscal policy, with unpredictable consequences for the well-being of Brazilians.

These four moves suggest a shift in the government's stance and the opening of a channel to overcome the lack of confidence from the private sector. A positive response was reasonably expected from this, which appears to have materialized in the results of the airport auctions.