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Brazil finance minister says country needs series of budget reforms

Staff Writer |
The Brazilian government needs to win approval of a series of budget reforms to protect the economy from global volatility stemming from the election of Donald Trump in the United States, Finance Minister Henrique Meirelles said.

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The reforms, which include a 20-year-long federal spending cap and a pension reform, will also help lower inflation back to the official target, Meirelles said at an event in New York.

"The more decisively we approve the reforms, the more decisively country risk will decline," Meirelles said.

The budget reforms have a high chance of winning congressional approval, Meirelles said.

The spending cap has already passed through the lower house of Congress, and the pension reform will be presented before year-end, President Michel Temer said last week.

"Before it was a policy of 'spend more,' and we now want markets and private investors to have a bigger role in the economy, even to allow for a better allocation of resources," Meirelles told participants at an event sponsored by Banco Bradesco SA in New York.

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