This is the official truth about the current SAP (structural adjustment program) in Brazil. It is a vicious circle: the main reason of the public deficit is, by far, the payment of interest by the Federal Union, both to national and foreign lenders. Instead of lowering interests, the government prefers to cut health expenses and pensions and has put a halt to the R&D activities. It's the neoliberal "solution". The consequent deepening of the Brazilian economic crisis will also mean another crisis for Argentina, since both countries are closely linked.
The Minister of Finance, Pedro Malan, today (11/03) presented to the House of Representatives the measures encompassed by the Fiscal Stability Program. Full text of the Minister´s opening remarks:
http://www.fazenda.gov.br/ingles/documentos/Ip981103.html
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