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Harsh reality sets in for Brazil

Friday, December 16, 2016 - 01:46

Brazil's President Temer has unveiled a raft of stimulus measures to try and quell the growing discontent across the country, after the Senate approved a controversial 20-year spending cap in a bid to get the country's economy back on track. Kate King reports

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Brazilians have never been short of passion And many are now channeling it towards the country's government after it imposed a controversial austerity plan. The biggest restriction - a cap on public spending - that will remain in place for the next twenty years. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "That is a hugely significant period of time to be imposing such harsh austerity measures and ultimately it is always a case of who is going to be losing out though these measures and usually it is the people who are worst off in society." President Michel Temer said the bill was 'the first amendment at getting the country out of recession'. Unemployment there has nearly doubled to more than 11%, as many as 12 million aren't in work While the Olympics may have raised spirits - it didn't raise funds In fact it cost the nation an estimated 12 billion dollars to host during what were already unstable economic times SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "It's been left in a position whereby austerity is necessary, at a time when you have an aging population a growing population it is going to be extremely difficult, extremely unpopular as we have seen by the large number of protests we have seen throughout the country but it is something that the economy possibly needs." Temer - in trying to offset the unpopular measures - says the government also plans to lower the cost of doing business in Brazil by streamlining some taxes and cutting red tape to reduce the time it takes to open a business or export and import goods. The government says those measures will also help out consumers But that's cold comfort to the 60 percent of Brazilians who are against the spending cap but who must now put up with the consequences until 2037.

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Harsh reality sets in for Brazil

Friday, December 16, 2016 - 01:46