Dissatisfied members of president's party call for changes

07/04/2004 - 20h36

Brasília, 4/8/2004(Agência Brasil) - "An Easter Letter - Before it is too late: Make Changes" ("Carta da Páscoa - Antes que seja tarde: Mudança Já") is the title of a document signed by 15 deputies who are members of the Workers Party (PT) that president Luiz Inacio Lula da Silva also belongs to. The signatories, known as the "rebellious wing of the party" say they are not satisfied with government economic policy.

The letter contains 27 grievances which range from interest rates to inflation targets to the primary surplus. The signatories accuse the government of economizing money to pay for commitments made with the International Monetary Fund, such as the primary surplus target of 4.25% of GDP. They say they want more spending for social programs which were campaign promises.

"It is not acceptable to see the government spend US$3.4 billion (R$10 billion) to pay off debts. That is money that should be going to ministries. That is not PT policy," complains Chico Alencar (PT-RJ).

According to Paulo Ruben Santiago (PT-PE), the group wants a discussion of economic policy within the party, but is not demanding that minister of Finance, Antonio Palocci, be fired. "We are not calling for the substitution of any cabinet member," he declared

The signatories say they will take their demands to the national party meeting this month (on the 17th and 18th). "We want a different Brazil," said one of them.

The president of the PT, Jose Genoino, declared that there was nothing new in the Easter Letter. "The government is already doing some of the things they ask for, like microfinancing and lower interest rates. We want interest rates to fall even more," he said, adding that the party is willing to discuss the issues but has to be careful about surprises in macroeconomic policy.

Genoino declared that what is necessary is to balance inflation targets with development needs. He said the PT has to get used to being the government. "We cannot just undo what has been done. That will make things worse. We have a lot of responsibility," he said. (Translator: Allen Bennett)