Brazil said it would help get the European Union out of its giant debt crisis, further cementing the Latin American nation’s role at the global big kids’ table.
President Dilma Rousseff, the nation’s first woman president, gave the nod at the EU-Brazil summit in Brussels.
She said that Brazil “is ready to take on its responsibility,” and added, “you can rely and count on us.”
Rousseff had said before that the Brazil and the other BRICS countries — Russia, India, China and South Africa — might be able to help Europe out of its crisis. But other nations weren’t on board.
So it seems that for now, Brazil stands alone. Rousseff also said that she hoped the EU would focus less on austerity measures, as it’s been doing, and more on promoting growth and job creation.
“Simply adopting recessive adjustments is not enough," she said.
It’s unclear what measures Brazil will offer.
Rousseff’s promise comes at a time when Brazilian growth is slowing.
Brazil’s central bank lowered its forecast for growth this year from 4% to 3.5%, due to the slowing global economy — and spending cuts implemented by the government.
Last year, Brazil’s economy expanded at a rate of 7.5%.
Observers have been warning for awhile now that Brazil was in danger of overheating. But the emerging market isn’t exactly on a crash course. It’s just slowing down a little.
The FT quoted an economist with Goldman Sachs, Alberto Ramos, who said: “They [Brazil] cannot defy gravity. They are part of the global economy."