Brasília, June 30, 2003 (Agência Brasil - ABr) - The governors and the President agree on the need to approve the tax and Social Security reforms, and they will dedicate themselves to the utmost to get the reforms approved. This declaration was made today by the governor of Ceará, Lúcio Alcântara, following a meeting between President Luiz Inácio Lula da Silva and the governors, in the Planalto Palace.

According to Alcântara, they discussed "some minor adjustments." The governor affirmed that a rapid agreement on these adjustments is possible. In his view, there are no problems, and the principles of the tax reform, neutrality and not increasing the tax burden, will be maintained.

With respect to the Contribution on Intervention in the Economic Domain (Cide), the governor said that there is adequate negotiating room to discuss the states' participation. He informed that the Minister of Finance, Antônio Palocci, also presented a proposal for a compensation fund, which is already under discussion.

Alcântara added that a meeting should take place between the governors, the Chief of the Presidential Advisory Staff, Minister José Dirceu, and Benedita da Silva, Minister of Assistance and Social Promotion, to discuss the unification of all the government's social programs. (DAS)