InfoAnda - Brazil public sector demands stymie Rousseff's cost-control push |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Widower testifies at start of German 'veil martyr' trial | 27 October 2009
AVA lifts suspension on import of China milk products | 18 December 2008
Air China expects to return to black in 2009 | 20 January 2010

Animated films could impact Oscars | 10 November 2009

Forum Views () Forum Replies ()

Read more with google mobile : Brazil public sector demands stymie Rousseff's cost-control push |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Anatole Kaletsky Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Frederick Kempe Christopher Papagianis Mark Leonard Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Olympics Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Full Focus Editor's choice Our best photos from the last 24 hours. See more Images of June Follow Reuters Facebook Twitter RSS YouTube Read Pop music too loud and all sounds the same: official 26 Jul 2012 Facebook revenue growth skids, shares plunge 26 Jul 2012 Citi sees 90 percent chance of Greece leaving the euro 26 Jul 2012 Retiring Ron Paul may distract from Romney fanfare at convention 26 Jul 2012 India to give free generic drugs to hundreds of millions 05 Jul 2012 Discussed 246 Mexico urges U.S. to review gun laws after Colorado shooting 158 Fourteen killed in Denver movie theater shooting 105 Penn State hit with $60 million fine, other penalties for Sandusky scandal Watched Facebook loses more Wall St. friends Thu, Jul 26 2012 Facebook fumbles first earnings Thu, Jul 26 2012 New York café sells only water Tue, Jul 24 2012 Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Flashback: Beijing A look back at the opening ceremonies of the 2008 Olympic Games in Beijing, China. Slideshow My name is ... What their moms named these famous singers. Slideshow Brazil public sector demands stymie Rousseff's cost-control push Tweet Share this Email Print Related News UPDATE 3-Santander Brasil profit sinks on provisions; shares down Thu, Jul 26 2012 UPDATE 3-Brazil's Itaú gains on pledge for loan discipline Tue, Jul 24 2012 UPDATE 4-Bradesco cuts loan growth estimates after profit miss Mon, Jul 23 2012 Related Topics World » Brazil » People walk past banners hanging on the facade of the Brazil's Ministery of Planning, Budget, & Management in Brasilia July 25, 2012. Credit: Reuters/Cadu Gomes By Paulo Prada and Walter Brandimarte RIO DE JANEIRO | Thu Jul 26, 2012 6:08pm EDT RIO DE JANEIRO (Reuters) - Brazil's civil servants haven't gotten President Dilma Rousseff's message. A slowing economy, dwindling tax revenue and falling demand for the country's commodity exports mean the government must tighten its belt, she argues. But customs workers, university professors and myriad other federal employees are staging strikes across the country, pushing for salary increases worth 92 billion reais ($45.3 billion). On Thursday, Brazil's statistics agency, normally a clockwork conveyor of economic data, postponed the release of June unemployment figures because of striking statisticians. So far, the protests fall shy of the mass walkouts that once paralyzed Latin America's biggest economy. But the strikes are a growing headache for Rousseff at a time when she sees unexpected increases in state spending as counter to her current priority: reviving Brazil's stagnant economy. "This is a direct challenge to her stated objective," said Alberto Almeida, a political analyst at the Instituto Analise, a research firm in Sao Paulo. "It's not likely she'll be willing to cede much." Unlike many of her predecessors, Rousseff so far has preferred to limit increases in government spending as a means to stimulate economic growth. Instead, she is hoping fiscal restraint will allow Brazil's central bank to keep the country's historically high interest rates at their current lows - stimulating not just demand in the short term, but accessible credit in years ahead. Public sector unions, however, say the government should make an exception for salaries. Their strikes began in May, when professors at federal universities walked out. Since then, other employees have followed suit, crippling services and staging noisy protests along the grassy esplanade between the domino-like ranks of ministry buildings in the capital Brasilia, and outside government offices nationwide. Their demands amount to half the government's existing salary obligations, according to Brazil's planning ministry, or just under 2 percent of the country's economy. The unions argue that recent raises for some civil servants don't reflect the bonanza that led to average annual growth of more than 4 percent over much of the past decade. The growth, which catapulted 30 million Brazilians out of poverty, also swelled public coffers, with government revenues nearly tripling from 2003 to 2011. But the push for higher salaries comes as Brazil's economy has screeched to a near halt. The crisis in Europe, uncertainty elsewhere, and a slowdown in China and other big buyers of commodity exports have eroded confidence among Brazilian businesses and crippled investment in the economy. A TRAP FOR ROUSSEFF After gangbuster growth of 7.5 percent in 2010, the economy grew by just 2.7 percent in 2011. This year, economists are forecasting growth of as low as 1.5 percent. With the slowdown, tax revenues are down, dropping by more than 6 percent in June from the year-earlier period. The falling revenues, and growing pressures from opposition lawmakers for costly earmarks, are causing many economists to question whether Brazil will hit longstanding budget targets. "There's a trap in front of the Planalto," newspaper O Globo said in a Thursday editorial, referring to demonstrations near Rousseff's office. "Just when fiscal responsibility is the only vaccine available." Already, Rousseff has buckled to some of the demands of professors, whom she believes should in fact earn more, according to people familiar with the negotiations. She remains reluctant to make further concessions, though, especially considering uncertainty around tax revenues for next year. Part of her strategy, government officials say, is to leverage the public perception that federal employees are already better paid than many private-sector peers. Because of a recent transparency law, many federal salaries, like those of well-paid workers at Brazil's regulatory agencies, are in the process of being disclosed for the first time. During two terms as president, Luiz Inacio Lula da Silva, Rousseff's champion and predecessor, greatly expanded the size of Brazil's federal workforce. Hoping to improve public services, he increased the federal headcount by more than 15 percent to more than half a million, according to official data. Personnel spending grew by an average of 11 percent annually during the period. When Rousseff took office last year, she quickly had to downshift, as the economy showed clear signs of slowing by mid-2011. Though annual raises are built into the contracts of most civil servants, spending on personnel last year climbed by only 7.7 percent - barely more than inflation for the year. Given the soaring tax revenues of recent years and healthy raises for some specialized civil servants, public sector unions began demanding across-the-board increases for all. "Many civil servants haven't shared fully in Brazil's recent economic growth," said Vagner Freitas de Moraes, president of CUT, a big labor group that includes public sector unions. "This is like planting a seed, but then not watering the plant." MISSED TARGETS? Further concessions would drive Brazil farther away from its so-called primary surplus target, a measure of budgetary funds left over at year-end that excludes payments on debt. For more than a decade, the measure has been an anchor of Brazil's commitment to balanced public books. Many economists are worried that Brazil could miss the 2012 target, equal to 3.1 percent of gross domestic product. "Brazil's fiscal framework is poised to get worse," said Monica Baumgarten de Bolle, a professor at Rio's Pontifical Catholic University. "How bad it's going to be will depend on how anxious the government is to foster economic growth." Since May, the government has forgone billions of reais in revenue by giving tax breaks to stimulate consumer demand. The measures, designed to be temporary, continue to be renewed as the economy so far has failed to respond. Economists believe Rousseff may soften next year's primary target of nearly 156 billion reais to allow for infrastructure investments needed to host the 2014 World Cup and 2016 Olympics. Still, Brazil's finances remain in far better shape than those of many developed countries. So while a missed target would create buzz, it's unlikely to scare away crucial foreign investment. (Additional reporting by Ana Flor and Hugo Bachega; Editing by Todd Benson and Eric Walsh) World Brazil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Friday, 27 July 2012
Enough blood: Milosevic allies take power in Serbia |
In shift by Egypt, president meets Hamas leader |
Guinea Bissau coup set to halve cashew production: U.N. |
No Libya solution in Cuba, but ready to talk to U.S.: Castro |
Ghana's ruling NDC to name Mahama as election candidate |
U.S. to let Myanmar import ban expire, at least temporarily |
Brazil public sector demands stymie Rousseff's cost-control push |
An Error has occured |
Google unveils ultrafast Internet/TV in Kansas City |
Apple U.S. margins for iPad about half of iPhone: filing |
Kodak, Apple patent fight to remain in bankruptcy court |
Director Todd Solondz looks for lightness in new Dark Horse |
Katie Couric aims for humanity, intelligence in TV talk show |
Warner Bros. postpones Gangster Squad movie after shooting |
Walters, Sawyer and Couric step in for 'GMA's Robin Roberts |
Insight: Cautious on Syria, Obama moves to help rebels |
Ukraine parliament to reconvene, language bill could become law |
U.S. fears Syria preparing for massacre in Aleppo |
Spanish unemployment hits record high |
More empty stomachs in North Korea as Kim plans reforms |
China dismisses case against lawyer, tiny win for rights movement |
Analysis: Fight over Islam, money and power brings violence to Volga |
China-Canada oil deal raises political hackles in Washington |
Two soldiers killed in blast in southeast Turkey |
Smartphones power record Samsung profit of $5.9 billion during Apple lull |
Far from Silicon Valley, tech industry finds an oracle |
Facebook revenue growth skids, shares plunge |
Madonna voices love for tolerant France in Paris show |
Universal Music considers bulk sale of EMI asset: FT |
Exclusive: Secret Turkish nerve center leads aid to Syria rebels |
Top Venezuelan embassy official killed in Kenya |
Polish PM appoints new agriculture minister |
Russian forces kill eight suspected militants in Dagestan |
Congo wants U.N. tasked with hunting eastern rebels |
Bulgarian opposition demands vote on nuclear plant |
Former Milosevic aide takes power in Serbia, EU uneasy |
Ukrainian minister says Tymoshenko completes medical treatment |
Facebook's value slides by $10 billion; outlook unclear |
Google admits it did not delete Street View data |
Facebook revenue growth skids, shares plunge |
Bomb joke tweeter wins landmark ruling |
Lady Gaga makes acting debut in Machete Kills |
Universal Music considers sale of EMI's Parlophone label: sources |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01