RIO DE JANEIRO, July 13 (Xinhua) -- Brazilian President Dilma Rousseff on Fridaycriticized some European countries for their austerity measures in tackling theeconomic crisis.
"Several countries are slashing (year-end bonuses), cutting the salary of councillors by30 percent, and raising taxes," said Rousseff in the inauguration of an oil platform inthe northeastern Bahia state, warning that these belt-tightening measures would onlymake things worse.
Rousseff said cutting workforce in the debt-ridden European Union (EU) only served toincrease the unemployment rate by 25 percent in the region.
Rousseff singled out Spain for its utmost austerity measures, as the conservativegovernment of Prime Minister Mariano Rajoy this week announced a whopping valueadded tax increase of 3 percent and drastic cuts in public spending to reduce the fiscaldeficit by 65 billion euros (about 78 billion dollars).
In contrast to the EU, Brazil is trying to boost its economy by lowering taxes and raisinggovernment spending, including the payment for training courses for employees.
"Our way is not to take away the rights of workers. We are going to help themsystematically," said Rousseff.
Speaking of her government's efforts to battle the economic slowdown, Rousseff saidBrazil's Central Bank this week lowered interest rates to 8 percent, the record low.
"The government is looking to guarantee that the country performs as best as possibleand emerges from the crisis by making the most of the opportunities that a crisis alwaysbrings," said Rousseff.
She made clear that resource-rich Brazil will not restrict any labor rights, will booststimulus measures and act to prevent the national currency, the real, from appreciatingagainst the dollar as this would harm the already fragile industrial sector.
Due to the global financial crisis, Brazil's economic growth rate will drop to 2 percentthis year, according to forecast.
