Economic Recovery will Require “a Little Patience,” Says Economy Minister

RIO DE JANEIRO, BRAZIL – The Minister of Economy, Paulo Guedes, advocated economic deregulation policies and urged patience so that the reforms may begin to show results in the country’s recovery.

“Give it a year or two, give it a government, give it a chance for a four-year government of liberal democracy. Don’t work against Brazil, have a little patience,” Guedes said during a seminar on the Provisional Measure of Economic Freedom (MP 811/2019) at the Superior Court of Justice (STJ) in Brasília.

In his speech, Guedes presented a lengthy defense of liberal policies against the “cognitive delay” that has led Brazil from a dynamic economy to stagnation over the past 30 years of social democracy. He said. “Wait four years, let’s see if it gets a little better, give us a chance to work, too.”

Provisional Measure of Economic Freedom

The minister defended three points he considers crucial in the Provisional Measure of Economic Freedom: the reduction of red tape for those who wish to do business, the restriction of “state abuse” through government intervention in the economic environment, and the guarantee of legal security for contracts.

MP 811 is scheduled to be voted on Tuesday, August 13th, in the Chamber’s plenary session. The rapporteur for the measure, Deputy Jerônimo Goergen, also present at the seminar in the STJ, is said to have made changes in the text “to reduce disagreement.” According to him, “the text remains open and new points may come and go by tomorrow.”

After having received 301 amendments, 126 of which were fully or partially accepted by the rapporteur, MP 811 was approved on July 11th in the joint congressional committee set up for its consideration. The Provisional Measure will expire on September 10th, unless it is voted on by the Chamber of Deputies and the Senate before then.

The MP deals with several issues. Among other measures, the text establishes guarantees for the free market, provides for bureaucratic immunity for startups and extinguishes the Sovereign Fund of Brazil. The provisional measure also provides for the regulation of labor on Sundays and holidays, among other labor changes, such as the adoption of the digital work booklet.