Friday, February 18, 2011

Green light in the Brazilian Congress to the proposal to increase minimum wage

BRASILIA, 17 Feb. (Reuters) - The Chamber of Deputies of Brazil has given the green light Wednesday to the proposal of President Dilma Rousseff to increase the minimum wage, which is his first major legislative victory since taking power on 1 January. The parliament approved a bill to increase the national minimum wage to 545 reais (240 euros), rejecting the amendments supported by labor leaders on an even larger increase.

Next week the Senate could approve the project. A further increase could have derailed the campaign Rousseff to curb high public spending and curb inflation, which reached a maximum of six years nearly 6 percent last year as the economy continues to grow. The Government last week announced a cut in the budget this year of 30,000 million dollars (22.081 million euros) In theory, Rousseff has a comfortable majority in both houses of Congress, but due to low party loyalty must negotiate and persuade members of his coalition, including his own Minister of Labour.

The result in the House of Representatives showed Rousseff capacity to bring together its coalition, even on sensitive issues to voters. However, the president risks his popularity to push through measures of austerity. His predecessor, Luiz Inacio Lula da Silva (2002-2010) ruled during a period in which the real value of wages was an increase of nearly 60 percent, which helped millions of Brazilians out of poverty and continued popularity President at record highs.

Union leaders, who wanted an increase to at least 580 reais (256 euros) from the current 510 reais (225 euros), had accused Rousseff using inflation as an excuse to continue his agenda of fiscal austerity. The minimum wage is used to calculate various state salaries and benefits, including pensions of nearly 19 million Brazilians.

Each additional real totals about 300 million reais (132 million euros) in annual government spending and stimulate an economy.

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