Latest News

Brazil will not be introducing free public transportation soon, the chief of staff to the president says

Rui Costa said that the Brazilian president's chief of staff has no plans for the government to eliminate the public transport fares in Brazil this year or the next. This comes a day after Brazil's finance minister confirmed the results of studies assessing ways to fund the sector.

Costa told a local radio station that there was no plan for this or next year. "I would like to be clear that the president has only asked for studies."

A government source said that there were doubts about the logistical and the political feasibility of this proposal.

Source: President Luiz inacio Lula da So has asked his economic team for an evaluation of the possible implementation of the measure. However, he is not in a hurry and doesn't intend to make it a part campaign promise.

Costa said that the studies would be presented to President Obama so he could assess if the project was feasible and from where the money would come. If it is viable, the announcement will come at the right time.

In an interview this week with Record TV, Finance Minister Fernando Haddad stated that the proposal will be included in Lula’s policy platform in Brazil next year when it holds its general elections.

Haddad stated that "(Lula), knows this issue is very important for workers, environmental protection, and urban mobility."

Investors' fears that the initiative might have negative fiscal consequences have caused the finance minister's comments to influence Brazilian markets. Reporting by Lisandra Parguassu, Writing by Fernando Cardoso, Editing by Rod Nickel

(source: Reuters)