Brasília, July 21, 2003 (Agência Brasil - ABr) - In an interview this morning on the Globo Network's "Good Morning, Brazil," show, Minister of Finance Antônio Palocci affirmed that the "growth" promised by President Luiz Inácio Lula da Silva has no set date to begin. "Growth has no inauguration ceremony. It is marked by the beginning of a process in which the measures that were essential for blocking the explosion of inflation can be softened in the present. Last month the Copom began to reduce interest rates. If inflation continues to fall, this trend can be maintained."

He expressed optimism, when he assured that 2003 will end better than when it started: "Have no doubts about this. We are already better than when we began, in terms of macroeconomics, inflation, and the country risk premium. We shall end the year with economic growth," he underscored.

He also affirmed that the Administration will not negotiate what is fundamental in Social Security reform, and that is the change to a new social security system. According to him, "the National Congress has the right to make changes, even without listening to the government, if it so desires. But that's not the way it has been. The dialogue between the Executive and members of Congress, with both the Administration's support base and the parties as a whole, has been very positive. I think that everybody will have a responsible point of view."

According to Palocci, the basic point of social security reform is not to remove the rights of civil servants, but to show them that it is no longer possible to pay for their retirement at 48 or 55 years of age. With respect to telephone and energy contracts, the Minister said that "you can't expect investments in the country, if the government does not make it clear that established contracts will be respected," he concluded. (DAS)