Pepe Vargas: 'We will not back down on the adjustments'
The Minister of Institutional Relations reinforced that the government does not intend to backtrack on the fiscal adjustments announced by Joaquim Levy, of the Finance Ministry, but assured that the changes do not diminish labor rights; "We have no objective of retreating, of withdrawing rights, quite the contrary," he stated, adding that it is necessary "to make corrections to eliminate some existing distortions and guarantee rights to the people"; Pepe also emphasized that "this adjustment is made in the first year of government"; this message comes in the wake of President Dilma's speech, in which she asked ministers to defend the new measures.
247 - The Minister of Institutional Relations, Pepe Vargas, reaffirmed this Thursday, the 12th, that the government has no intention whatsoever of "backing down" on the economic adjustment announced by Finance Minister Joaquim Levy. He assured, however, that these changes are short-term and do not affect workers' rights.
The president has been pressured to back down on the austerity measures, which are viewed unfavorably by the country's main labor unions, who have already taken to the streets in protest, and even by factions within the Workers' Party (PT). Today, the prediction of a GDP below zero in 2014, according to the Economic Activity Index (IBC-BR) released by the Central Bank, was further pressure on Dilma to reconsider the austerity measures.read more).
Below is a news report from Agência Brasil regarding Pepe Vargas's statements:
Pepe Vargas defends fiscal adjustment and says measures are short-term.
Luana Lourenço - The Minister of the Secretariat of Institutional Relations, Pepe Vargas, defended today (12) the fiscal adjustment proposed by the government. He said that the measures are short-term and necessary to balance public accounts and denied the removal of workers' rights with changes in the granting of Social Security benefits.
"We need to make the adjustment. It is in the first year of government that this adjustment is made. We need the contribution of everyone within the government and we need to make it clear to our partners – municipalities and states – that this adjustment aims precisely to balance our fiscal process so that, in the next period, we can continue the project of economic and social development of the country, continuing all the public policies that we have been developing," argued the minister.
Pepe participated in the opening of the meeting of the Advisory System for Federal Affairs, with officials from the ministries that act as intermediaries between the federal government, states, and municipalities. The minister's speech follows President Dilma Rousseff's directive for government members to "wage a battle of communication" and "be clear" in defending the Executive's policies and decisions.
Commenting on Provisional Measures 664 and 665, which deal with changes in the granting of social security benefits – targets of criticism from labor unions and the opposition – Pepe reiterated that the new rules do not take away workers' rights.
Minister says government is "calm" regarding the nomination of Leonardo Picciani (right) to lead the Chamber of Deputies. José Cruz/Agência Brasil
"We have no intention of backing down, of taking away rights; on the contrary, even if we eventually have to make certain corrections to some benefits that are rights of the Brazilian people," the minister emphasized. According to Pepe Vargas, the changes to unemployment insurance, fishing allowance, salary bonus, and pensions are "corrections to eliminate distortions and to guarantee this right for the Brazilian people over time."
The minister, who is responsible for coordinating between the government and the National Congress, also commented on the election of Congressman Leonardo Picciani (PMDB-RJ) to lead the PMDB caucus in the Chamber of Deputies. Pepe said that the government is "calm" about the appointment and has no problems with the new leader.