BRAZIL: Presidential Candidate Alvaro Dias Wants To Rebuld The Republic

(RTTNews) - Alvaro Dias, 73, a pre-candidate of Brazilian presidential election from Podemos party, wants to "rebuild the Republic." A four-time elected senator, he is currently the leader of his party in the Senate and told Agencia CMA in an exclusive interview some of his ideas and proposals for Brazil.

AGENCIA CMA: What is your government plan? Did you already choose your team?

ALVARO DIAS: We are working on the government plan. We have the essential, but there will still be developments until the candidacy formalization, which is when we present the proposals. About the team, it would be adventurous to mention names right now, during the electoral campaign. There is no possibility of that. The team must be built at the appropriate time, which is after the elections.

AGENCIA CMA: What would you say it is the core of your government plan?

DIAS: I have been saying that my government's motto would be to rebuild the Republic. That would require changes to the current governance system, which has failed and is corrupt. Rebuilding the Republic also involves a series of constitutional reforms, among them the political reform, the State reform, the Social Security and the tax reforms. There is also the federative reform, in which we would review the fund distribution to federation members. The main pillars of the rebuilding would come in the first 100 days of government.

AGENCIA CMA: What is your plan to reduce the fiscal deficit?

DIAS: All those reforms are essential. State and Social Security reforms are two fundamental pillars to the fiscal adjustment. A system to control public spending would also reduce current expenditures. With the tax reform we would have, differently from what is imagined, a revenue growth, because if we lower the tax burden, the economy wheels will turn faster. Those who can pay more will pay more, and those who can pay less will pay less. That will improve the business environment and boost economic growth rebalancing the public budget.

Tax breaks will have to end. Tax breaks are against the law because the Fiscal Responsibility Law only allows them if there is compensation. The tax breaks must be reviewed.

AGENCIA CMA: What is your position regarding the labor reform and the spending ceiling? Other candidates said that they would revoke both measures.

DIAS: The labor reform brings some advancements that must be tried. When we reach 2019 enough time would have passed to verify what was positive and what was negative, and from there we can make amendments.

Regarding the spending ceiling, I believe that the crisis has gotten worse and that it will be inevitable to review that limit. Indeed, the next government will face an initial standoff and be forced to look for funds. I am not advocating for the elimination of that system, but for an analysis of what could be changed in spending controls.

AGENCIA CMA: Are you favorable to privatizations, in particular of Eletrobras?

DIAS: We have too many state-owned companies to privatize, there are 146. Except for strategic firms, I believe they have to be privatized, but only after working up their equity. There were significant losses due to corruption and incompetence. In that context, companies like Banco do Brasil, Caixa Econimica Federal, Petrobras, and Eletrobras would be excluded [from a privatization process]. At this time, what we can admit is to privatize Eletrobras' subsidiaries, but the controlling share must remain with the State.

AGENCIA CMA: What are your thoughts on the electoral scenario for candidates at the center of the political spectrum?

DIAS: The consequence of a large number of political parties is a large number of candidacies, making it difficult to bring quality to the debate. That is inevitable. There is no way to eliminate candidacies, but there is a convergence towards some parties. At least five are discussing the possibility of gravitating around one name.

AGENCIA CMA: How would you build the dialogue with Congress in such a polarised political environment?

DIAS: It will be possible to have a relationship with Congress from the moment we have an ethical standing in the Executive Power. The Congress is continuously accused of promiscuity, but if that exists, it is because in the Presidency there is a corruptor. If we have a correct president, with the courage to promote changes and the ability to harness support from the population, then Congress will not row against the tide.