1 of 1 Lula talks to business people in Brussels Photo: TV Brasil/Reproduction Lula talks to business people in Brussels Photo: TV Brasil/Reproduction
The economic forum takes place hours before the opening of a summit meeting in the same city, bringing together representatives of the countries of the European Union and the Community of Latin American and Caribbean States (Celac), which Lula is also attending.
In the speech, Lula referenced the recent challenges of the Covid19 pandemic, climate change, the war in Ukraine and what he called the “democracy crisis” and said that “it’s up to government officials, business people and workers to address these to be restored.” Path of Democracy”.
Below are the six topics of Lula’s speech to business people this Monday morning:
Lula arrives at the summit between Celac and the European Union: “We have intense economic activity”
In the very first part of his speech, Lula mentioned the need to finalize the MercosurEU agreement, which has been negotiated since 1999 and is currently under review.
Progress in those negotiations is seen as Brazil’s top priority in Mercosur’s rotating presidency a post Lula assumed earlier this month.
“A balanced agreement between Mercosur and the European Union, which we intend to conclude this year, will open new horizons. We want an agreement that preserves the parties’ ability to respond to current and future challenges,” Lula said.
In the current form, the MercosurEU agreement provides that companies based in one block can participate in tenders in the countries of the other block on an equal footing.
In practice, this makes it difficult for governments to prioritize local businesses when hiring a product or service to boost the domestic market.
Lula opposes the rule and says Brazil relies on public purchases to boost local industry.
“Government purchases are an important tool to articulate investment in infrastructure and sustain our industrial policies. The US and European Union have taken the lead and are already adopting ambitious industrial policies based on public purchases and national content,” the President said.
“Brazil has a large domestic market of 203 million people and a huge consumer capacity that is still repressed, which will require increased investment in durable goods, inputs and related services,” he continued.
Elsewhere in the speech, Lula touched on environmental protection and climate change a point that has also delayed the conclusion of the MercosurEU deal, albeit due to European reservations.
“In previous mandates we have reduced deforestation by 80%. This time, we’ve committed to eliminating deforestation in the Amazon by 2030, and already in that first half of the year we’ve reduced it by 34% compared to last year,” he was quoted as saying.
Lula also said the government will lay “the foundations for the country’s reindustrialization with fewer polluting firms, greater technology density, and the creation of green and highquality jobs,” without setting a deadline or detailing the plan.
“Brazil has returned to the international stage to contribute to tackling the challenges facing our planet, such as the climate crisis and rising inequalities. We will prove, as in the past, that it is possible to produce and grow sustainably and efficiently,” said Lula.
In his address to entrepreneurs, Lula also foreshadowed some of the details of the new public investment program that the federal government plans to launch in the coming weeks dubbed the “New PAC” inside and outside government.
Without referring to the acronym, Lula said the plan calls for resuming stalled work, accelerating ongoing projects, and selecting new initiatives.
“We will push ahead with the modernization of our logistics infrastructure, with investments in highways, railways, waterways, ports and airports,” he said.
According to the president, the program will prioritize renewable energy generation and focus on areas such as urban mobility, sanitation, disaster prevention and housing finance.
“We will develop governmentcorporate partnerships in all of these areas in the form of concessions, publicprivate partnerships and direct contracts,” he enumerated.
The sanitation framework is attracting private investment, but the country still has a long way to go to make water and sanitation services universal
Immediately after mentioning the public investment plan, Lula made a caveat to reassure businessmen and the market. He said Brazil would be “rebuilt” without giving up “commitments on macroeconomic fundamentals.”
“Controlling inflation and balancing public finances are essential to ensure stability, a solid foundation for economic growth and social progress. With the ongoing tax reform, we are simplifying tax collection and making the economy more efficient,” he said.
Lula also spoke about his intention to expand the supply of credit in the country to stimulate the economy. However, unlike on previous occasions, he did not directly mention interest rates or central bank governor Roberto Campos Neto, with whom he has been in a public dispute since January.
“We have a robust financial system that allows for sustained credit expansion over the next few years. Our large international reserves, currently around $343 billion, provide a safe buffer against potential external volatilities,” Lula said.
“We will only grow sustainably through integration into our regional environment,” said Lula at the event.
“By hosting the meeting of the Presidents of the Amazon countries next August, we aim to formulate joint initiatives with seven other South American countries for the protection and sustainable development of this biome,” he said.
Mercosur: Lula defends ‘rapid and forceful’ response to deal with European Union