Brazil has to defend itself from speculative foreign capital inflows, which is different than protectionism, Brazilian President Dilma Rousseff said in an interview published in Veja magazine today.
The speculation isn’t a matter of “aggression” by developed economies toward emerging markets such as Brazil, though more a consequence of those nations trying to jump-start their economic recoveries, Rousseff is quoted as telling the Sao Paulo-based publication in its March 28 edition.
When the European Central Bank increases liquidity in the market by 1 trillion euros, the president said, it can’t expect countries to do nothing to stem the speculation that leaves no benefit behind for the emerging-market nation.
Rousseff is quoted as saying she agrees with Brazilian industrialists who say taxes are too high and keep local companies from competing globally. She vowed to reduce the tax burden so investment can increase, though the article didn’t provide more specifics.
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