-Caveat Lector- Brazil: IMF deal crumbling <Picture> Brazil: IMF deal crumbling A chorus of disapproval from Brazil's politicians, church leaders, and state governors threatens to undermine the deal reached between the International Monetary Fund and the Brazilian government last week. Under the terms of the agreement, yet to be ratified, Brazil would receive an additional tranche of $9bn (�6bn) in return for making further budget cuts and pledging to keep inflation in single figures. <Picture: [ image: width=150]> President Fernando Henrique Cardoso pledged he would keep to his tough stance on inflation and the budget in order to defend the currency, the real, which has been devalued by nearly 40% since the crisis broke. But politicians warned they would not support further tax increases, after the politically painful round of tax measures just passed by the Congress. "The executive government has to start sending signals on spending cuts before we will support new tax increases," said Odelmo Leao, a political ally of President Cardoso. The government admitted it had no plans yet for spending cuts, but called on a spirit of unity and sacrifice. "There is still no decision on how the new division of sacrifices will be, but the moment demands sacrifices by all," said budget ministry executive secretary Martus Tavares. Meanwhile, Brazil's influential Catholic bishops accused the government of "total submission" to the IMF and said the deal had not been adequately discussed by the Congress or the people. The new agreement would lead to "worse unemployment, social inequality, and extreme poverty," the Commission of the Bishops Conference of Brazil said. Test of wills with governors Perhaps most ominously, the government was bracing for a new showdown with state governors who want to reduce the amount they owe to the Federal Government. President Cardoso has cancelled a meeting that was scheduled for Monday with the opposition governors in Brasilia. He said he will not re-open debt negotiations with the states after the governors published a statement calling for a ceiling on their debt burden. "At this time, what the country expects from everyone is the courage to assume responsibility and not a political manifesto," President Cardoso said. The opposition governors, led by former President Itamar Franco, now governor of Minas Gerais state, have been campaigning for a relaxation of the tough budget targets that Brazil agreed to with the IMF. Last month it was the declaration of a moratorium on its debt repayment by Minas Gerais that precipitated the devaluation of the Brazilian currency. But the situation now resembles a political feud between the two Presidents who were once firm allies. Newspapers have been calling for the two men to cool their antagonism for the sake of the country. "Because of the political responsibility they have earned in public life, Fernando Henrique and Itamar Franco have an obligation to lower their guard, cool their spirits and trade belligerence for an agreement in favour of Brazil," said the Jornal do Brasil in an editorial. - DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
