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WORLD NEWSWednesday 16 September
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Brazil’s austerity package likely to face uphill struggle OAS to meet with
Haiti officials over
STAN LEHMAN woes have contributed to action tax, better known by and revenue that require October election
Associated Press President Dilma Rousseff’s its Portuguese initials CPMF, congressional approval is
SAO PAULO (AP) — The plummeting popularity rat- was extinguished and sub- likely to be rejected, with PORT-AU-PRINCE, Haiti
Brazilian government’s pro- ings, which have dipped to sequent attempts to re- only a portion gaining ap-
posed spending cuts and single-digits. vive it via a constitutional proval, and only after be- (AP) — The Organization
tax hikes are unlikely to re- The government wants to amendment have failed. ing watered down.”
ceive the congressional revive a financial transac- The tax consisted of a 0.38 Levy also said the govern- of American States said
approval that most need to
be enacted, a leading po- this week that a top rep-
litical risk firm said Tuesday.
The Eurasia Group said in a resentative will hold high-
statement that Brazil’s Con-
gress will likely reject most level meetings with Haitian
of the measures, “prompt-
ing the government to seek officials to support next
other sources of revenue
that don’t require congres- month’s scheduled first
sional approval.”
Finance Minister Joa- round of presidential voting
quim Levy on Monday an-
nounced nearly $7 billion and the second round of
in spending cuts and mea-
sures to raise tax revenue regional elections.
by some $10 billion to help
balance public finances The OAS said it backs hold-
and win back the support
of investors and the busi- ing the first round of presi-
ness community.
The measures are also dential elections on Oct.
aimed at covering an $8
billion shortfall in the 2016 25, when over 50 candi-
budget.
Joaquim Levy says the cuts dates are expected to run
are to include large-scale
infrastructure projects ini- for Haiti’s top political job.
tially aimed at stimulating
the South American giant’s In a statement, the OAS
now-stalling economy. Oth-
er savings will come from said electoral observation
personnel cuts within Cabi-
net ministry staff, as well as director Gerardo de Icaza
other cuts to Brazil’s bloat-
ed public sector. traveled earlier this week to
Brazil’s economy is in reces-
sion, and the economic Haiti’s capital to meet with
the provisional electoral
council and others “in sup-
port of the holding of the
upcoming elections.”
Next week, other OAS of-
ficials will make a prelimi-
nary visit to Haiti to ready
Brazil’s President Dilma Rousseff speaks about proposed budget cuts during a press conference its observation mission in a
at the Planalto Presidential Palace, in Brasilia, Tuesday, Sept. 15, 2015. Brazil’s Finance Minister country that is still recover-
announced on Monday nearly $7 billion in spending cuts aimed at covering an $8 billion ing from a January 2010
shortfall to the 2016 budget. (AP Photo/Eraldo Peres) earthquake that devas-
tion tax to generate $8.3 percent charge on nearly ment wants to delay pub- tated the capital and sur-
billion a year but the speak- all financial transactions. lic servant wage increases,
er of the lower house of The new CPMF would be eliminate certain retire- rounding areas. Last month,
Congress Eduardo Cunha 0.20 percent. ment benefits and institute
has said it is unlikely to be “The government’s strategy a wage cap for public sec- the OAS said its monitors
passed. of heavily relying on con- tor workers — measures
“I am against it and I think gress for both tax hikes and that that Eurasia said will found scattered violence
it’s unlikely that it would be spending cuts strikes us as find resistance in Congress.
approved here,” he told re- very problematic,” the Eur- The country’s two largest and irregularities in an Aug.
porters. asia statement said. “The trade union federations crit-
In 2007, the financial trans- bulk of additional savings icized the measures.q 9 legislative first round but
not enough to invalidate
results. That long overdue
round for the entire Cham-
ber of Deputies and two
thirds of the Senate was
considered a test run for the
Oct. 25 elections. Just 18
Puerto Rico relaxes charges of some pot cases percent of registered voters
turned out. Haitian election
SAN JUAN, Puerto Rico (AP) said the island’s justice sec- offenses. Legislators in the U.S. terri- council officials have said
— Puerto Rico is relaxing retary will make that deci- The announcement comes tory are now holding public
prosecution against first- sion on a case-by-case ba- as Puerto Rico faces a li- hearings on the issue. that the first-round legisla-
time offenders found with sis. quidity crunch amid a near- Justice Secretary Cesar Mi-
marijuana for personal use Garcia noted that the De- ly decade-long economic randa has said that smok- tive contest will be redone
in the U.S. territory. partment of Corrections slump. ing marijuana for medicinal
Gov. Alejandro Garcia Pa- spent nearly $2.3 million in In May, Garcia issued an ex- purposes will not be allowed in 25 of Haiti’s 119 constitu-
dilla signed an executive or- December on those ac- ecutive order directing the in Puerto Rico, but that the
der on Monday stating that cused of marijuana pos- island’s health secretary to government would allow encies due to the disorder
those found with six grams session, adding that public authorize the use of some patients access to cannabis
or less of marijuana could funds would be better spent controlled substances or derivatives that would be in- and violence that partially
face only a fine, community elsewhere fighting violence derivatives of the cannabis haled or used orally, such as
service or rehabilitation. He and other more severe drug plant for medical use. potions or pills.q marred voting in August.
But last week, the Verite
party, a major political fac-
tion associated with former
President Rene Preval, is-
sued a statement saying it
would withdraw from the
elections.q