RCE G100 Brasil - Economic Consensus Meeting

Feb 16, 2016, 08:00 ET from G100 Brasil

SAO PAULO, Feb. 16, 2016 /PRNewswire/ -- ANALYSIS – According to the G100, International Studies Group (Nucleo de Estudos Internacional), which in Brazil is made up of 100 Members (Shareholders, Presidents and CEOs), along with an additional 20 Members (Chief Economists and Financial Specialists), upon analyzing the latest government measures, an astonishing incapacity for action can be observed, which keeps giving rise to more of the same. It is a very difficult moment in which taxes cannot go up, and at the same time we need space to grow. There is great concern about the direction the economy is taking on the part of business, and pessimism is the prevailing mood. In a setting of even greater unemployment, levels of payment delinquency will be more heavily impacted, and this will have an effect on interest rates. What is on the agenda for businesses is to increase productivity, while cutting costs keyed to the drop in revenues. Convening the so-called "Big Council" is already a sign that the government is looking for a greater connection with the business community, to be more assertive in its decisions about adjustments, unless this movement is simply more a matter of image marketing than a practical approach.  

It is understood that restoration of the CPMF tax is inevitable, but there simply isn't the right climate for that discussion just now. If the government had any credibility, it would be much easier to approve this measure. It is believed that there will be no impeachment, because there is no one with strong credibility to succeed the President. We are in a period of "every man for himself." There is a need to show more backbone. We are on a "flight of chickens," led by hysterical roosters. We must deal with the reality that lies before us. If this is the president we have, we have to get along with her. We must talk about the things that are wrong, but if there is no practical and strong approach taken, then everyone is guilty. The fault lies with businessmen, who ought to set the government straight, and not just sit around waiting to see what's going to happen, with or without Dilma. This being the case, it's time to stop with the "Down with Dilma" talk and start talking about "Changing Dilma." The impression that comes through to us is that every Brazilian businessman either owes something or is afraid. It's very rare for leaders to talk without fear. The leaders of all the major institutions that represent the business community are tied up in politics, and that's why they themselves are not 100% exempt from blame. For the G100, the watchwords at this time are "Togetherness and Sharing."

Rodrigo Romero
Founder / President
G100 Americas

For the press:
Juliana Mathias - juliana.mathias@market21.com.br - (11 99161-8883)

SOURCE G100 Brasil