Economy Minister Says Brazil Escaped Depression Threat

RIO DE JANEIRO, BRAZIL – Minister of Economy Paulo Guedes reiterated on Tuesday, December 8th, that the Brazilian economy is observing a V-shaped recovery, with the generation of jobs, a high level of revenue, and the consumption of electric power at last year’s level.

“Brazilian democracy worked, despite all the noise. Through coordination, Brazil eluded the threat of economic depression. In the first year, we escaped from the fiscal abyss, in the second year we escaped from the threat of depression,” he said while attending the seminar “Dialogue between the powers for the economic recovery of the country,” organized by the Institute of Applied Legal Studies (IEJA).

Guedes emphasized that the government needs to reassess the flexibilities that the pandemic imposed on the country, and once again defended a new job generation program. “We have to somehow recognize the 40 million invisibles we found in the pandemic, and that’s why we’ll propose the ‘Verde Amarelo’ (wage subsidy program for young first-time employees). We’re not going to take rights away from anyone in labor legislation, but we need an extraordinary one- or two-year regime. But we need to work together, it won’t be a Minister who is going to come up with an extraordinary measure to save everyone,” he said.

Together with the Presiding Justice of the Federal Supreme Court (STF), Luiz Fux, Guedes praised the institution’s role in the economic rebound. “Where there is good institutional capital, per capita income is higher. We will always need the decisive action of the three powers in coordination,” he said. “We have great reliance on cooperation among the powers. I emphatically applaud the President of the Supreme Court’s awareness,” he added.

The Minister recalled that the reform of legal frameworks depends on an integration between the Executive, Legislative and Judiciary. “Sometimes an issue will go to the STF and depending on the decision, it’s either ten years late or ten years of rapid development. A lawsuit may represent R$150 billion against the federal government, and it will take away from our children and grandchildren’s future. Examine carefully, look closely. If we must pay, we will pay, but look at whether the legal dimension is not being played against the country,” he asked.

Guedes once again challenged what he has called the “cash release orders industry” which costs the federal government R$40 billion per year. “Brazil will be destroyed by the predatory cash release orders industry. I must say that I was shocked when I saw the cash release orders account growing more than health and education. There’s someone doing something wrong out there generating this destructive liability,” he completed.