Embattled Brazil acting president Temer proposes belt tightening

Embattled Brazil acting president Temer proposes belt tightening
Business | May 25, 11:38



Brazil's acting president announced austerity measures Tuesday aimed at pulling Latin America's largest economy from its worst crisis in decades, warning that a failure to act will mean “extraordinary hardship'' for future generations.

Speaking with government leaders in a national televised meeting, interim President Michel Temer, 75, (pictured), also banged his hand on the table while insisting he was up to the job.

Temer said the government would get an early repayment of about US$28 billion from Brazil's state-run investment bank BNDES and immediately abolish a fund created to channel oil revenues into education. He also pledged to limit annual growth in government spending to the rate of inflation, now about 10 percent.

The most aggressive belt-tightening plans will depend on the congress, and especially the senate. Senators must vote in the coming months on whether to return suspended President Dilma Rousseff to office after an impeachment trial or permanently remove her. The latter would let Temer stay in the presidency through 2018.

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