Gleisi accuses Temer's government of putting Mercosur at risk.

The Senate Agency - Senator Gleisi Hoffmann (PT-PR) said this Thursday (7) that Michel Temer's interim government puts Mercosur integration at risk, with the "implementation of a neoliberal program that would never be approved in free elections". For her, the objective is to revoke labor rights, to the detriment of the poorest segments of the population, who depend on the provision of free public services.

Gleisi Hoffmann stated that Mercosur has always been threatened by conservative political forces. According to her, the first attempts at integration date back to the time of independence of most of the bloc's countries, but the effective implementation of the bloc — which includes Brazil, Argentina, Paraguay, Uruguay, Venezuela, and Bolivia — was only possible thanks to the reaffirmation of democracy on the continent in the 1980s.

— For the first time, our countries began to see each other as allies, as partners. Our nations began to see each other as partners in a common destiny: integration, which would lead us to joint prosperity and sovereign insertion into the world stage.

Gleisi Hoffmann lamented statements by the interim government's Minister of Foreign Affairs, José Serra, regarding the revision of the Mercosur Common Tariff, which, according to her, would transform the current common market into a "mere free trade area." The senator also criticized the government's attempt to prevent Venezuela from assuming the presidency of the Mercosur Parliament (Parlasur) on July 31st.

Austerity

Gleisi Hoffmann also criticized other measures proposed by the interim government, such as establishing a ceiling for public spending over the next 20 years. She questioned the idea of ​​making cuts to contain the increase in debt relative to GDP and allow for the resumption of development.

"This is not a debt incurred by the nation-state. Much of this debt stems from financial speculation, the sale of securities in the financial market, and the collapse of the American financial system. Nation-states, not only Brazil but also European states, had to foot the bill," said Gleisi Hoffmann, who believes that "President Dilma's misfortune" began when she confronted the financial market and reduced interest rates to 7,25%.

Senator Cristovam Buarque (PPS-DF) criticized the high interest rates practiced in the country, but considered a spending cap to be positive. Regarding the fear that the cuts will affect education, he said that this will only happen "if we are lenient," adding that it is possible to reallocate resources from other sources.
Similarly, Senator Reguffe (independent-DF) advocated for lower interest rates, without abandoning a more austere fiscal policy.
A government cannot spend more than it collects. A government must keep its expenses in line with its revenue. It cannot simply keep accumulating debt, because that debt will be paid by future governments and, worse, by the Brazilian taxpayer, through increased taxes that the taxpayer will have to pay.

Senator Lindbergh Farias (PT-RJ) supported Gleisi Hoffmann's statement. He cited an Ipea study indicating that for every 1% increase in GDP spending, there is a 1,5% impact on growth. The same would occur in the opposite direction.

"Many people don't realize that when you cut a lot of spending, it has a big impact on the real economy. So, I think that when the senator questions austerity policies, it's because they are failing everywhere in the world, and here we have to be careful about what comes to Brazil."