Oct. 4 (Bloomberg) -- Brazilian President Dilma Rousseff said budget cuts are not enough to tackle the debt crisis.
“History shows us that we will only be able to exit the crisis through stimulus to economic growth, coupled with macroeconomic stability policies as well as social policies aimed at creating jobs and income,” Rousseff told a press conference today in Brussels following a meeting with European Union officials. “Simply adopting” fiscal adjustments “is not enough; more than that we must adopt macroeconomic policies while seeking to firmly tackle unemployment,” she said.
“One must clearly understand that the absence of effective regulation of the financial system lies at the root of this entire process,” Rousseff said. “We’re now in stage two of the crisis. The policy of bailing out financial institutions has led to a high government indebtedness in the vast majority of developed countries. We now face an increased sovereign risk,” she said.
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