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"Cleanup spares no one," says Dilma.

In a meeting with journalists, the president stated that all directors of DNIT and Valec will be dismissed.

247 - This Friday, President Dilma Rousseff gave an informal interview to a number of print media outlets on various topics, such as the transportation crisis and preparations for the World Cup. Read below the report by Folha de S. Paulo:

"All members of DNIT and Valec will leave," President Dilma Rousseff said yesterday, referring to the leaders who head these two institutions.

The National Department of Transport Infrastructure (DNIT) and Valec, the state-owned railway company, are at the center of the crisis caused by corruption allegations that brought down the top leadership at the Ministry of Transport.

The National Department of Transport Infrastructure (DNIT) has six directors. Valec has three. The president stated that the dismissals will occur "independently" of "partisan affiliations."

Dilma's idea is to restructure the sector. That's why she said she understood it was necessary to replace all the directors of the agencies.

The information was given yesterday during a conversation at the Planalto Palace with reporters from five print media publications.

Despite the "clean sweep" in the Transport Ministry, the president said that "politics cannot be demonized." She was indirectly referring to the President, who is primarily responsible for appointments in the ministry.

INTERNATIONAL

The president has always sought a neutral tone to please both allies and the opposition. "Just because someone is from the PT doesn't mean they're right. Just because someone is from the opposition doesn't mean they're wrong." Dilma has been striving in the last two months to improve her relationship with the political establishment.

WORLD CUP

Dilma intends to ensure that there is good broadband internet connectivity near the stadiums. "If the private [companies] don't do it, the government will. It will be a legacy," she stated.

Access Law

The Public Information Access Bill, currently being processed in the Senate, will be approved "as it came from the Chamber of Deputies." If approved, the law will end perpetual secrecy, the successive extension of periods during which documents remain out of the public eye.

INFLATION

Asked if the government expects inflation to converge to the center of the target (4,5%) in 2012 or 2013, the president did not give a precise answer. She said that the government has chosen to keep "the economy growing consistently," although at a slower pace than in 2010.

Dilma stated that a "very short-term convergence policy would have a damaging effect on the economy." "We don't want inflation under control with zero economic growth."

Another indication that the process of bringing inflation to the center of the target will be lengthy came in the following phrase: "We are making what is called a soft landing, with an adequate rate of growth and employment."

In March, Dilma even said that she would not allow inflation to return "under any circumstances," and that she would be a "monkey" in the fight against rising prices.

The president said she considers the Central Bank's interest rate policy to be "correct." This week the benchmark rate was raised to 12,50% per year.

EXCHANGE

When the subject turned to the exchange rate, with the Brazilian real appreciating, he responded with a question: "Do you think we can do anything if we don't know whether people are playing on the edge of the abyss or if they've already created a safety net?", referring to the situation in the US and Europe.

Dilma said she doesn't know if there will be a default on US debt, something she considered "absurd." According to the president, the current uncertainties in the international scenario do not allow Brazil to make many decisions regarding exchange rates right now.

"The world is moving sideways. Let it move forward a little and then we'll decide." Confronted with the recent statement by Finance Minister Guido Mantega, who said he was losing sleep because of the appreciation of the real, the president reacted with good humor: "It's good that we don't sleep. We stay alert. Little Guido keeps his eyes open."

WORLD

Dilma spoke about the economic difficulties in Europe and the United States. According to the president, when the Brazilian government perceives a "threat" of contagion due to the crisis in the developed world, "tough measures" will be taken.

INDUSTRIAL POLICY

The president confirmed that she will launch measures on the 2nd of next month to "incentivize the export of manufactured goods." Brazil's Innovation Program will attempt to help the national industry.

The measures should include four aspects: 1) value aggregation; 2) government procurement; 3) trade policy; and 4) exports.

On August 9th, a "significant improvement to the Supersimples" – a tax collection system that serves micro and small businesses – will be announced. The idea is to broaden the program's scope.

"Following that," according to Dilma, there will be a reduction in payroll taxes for companies, to encourage an increase in formal employment.