The sociologist and former President of the Republic Fernando Henrique Cardoso said on Tuesday (7), in a solemn sitting in the Congress in honor of the 15 years of Plano Real, that the plan helped to consolidate the Brazilian Nation and to establish a new democratic stage. The stability of the economy, he reminded, was a society’s demand. “It was visible, at that point, the fatigue caused by inflation. It was so visible that eight plans were attempted before Real. The Country aspired for something”, said the former President. Plano Real took effect on July 1st, 1994.

Fernando Henrique highlighted the importance of social participation and the acting of the former President Itamar Franco for the success of the plan. “If it had not been the firm determination of Itamar in maintaining me as Minister, it would not be possible to maintain Plano Real. He took the decision to appoint me as Finance Minister, for what I had little training. I said that I was going to try to solve three problems: inflation, inflation, and inflation. I did not know how to do that. It was needed to assemble a young group of economists that, every time, had new ideas", he said.

The former President also said that he only accepted to be candidate to President of the Republic in 1994 to continue Plano Real, which fought inflation. “The opposition candidate at the time was contrary to the plan."

The President of the Senate, José Sarney, said that Plano Real is the "freedom that the Country lives" and praised the former Presidents Itamar Franco and Fernando Henrique Cardoso. Sarney said that Itamar made a great government when installing Plano Real, but that Fernando Henrique knew how to incorporate it to the Brazilians' life.

The Senator also praised the former Finance Minister Rubens Ricúpero, responsible for the portfolio at the time of implantation of the economic plan.

Present at the sitting, Ricúpero said that his contribution was modest (he had been Minister from March to September, 1994, during the period of implantation of Plano Real). “I arrived late and left early. I only lived a brief but intense moment, which was the provision and the launch of the currency. I own this privilege to President Itamar Franco. He believed as no one else did”, he said.

Stability
The authors of the application for carrying out the Congress Solemn Sitting, the leaders of PSDB in the Chamber and Senate, highlighted the importance of the initiative in stabilizing the Brazilian economy. The Representative José Aníbal (SP) praised the fact of the plan being negotiated for months in the Parliament and of it stopping inflation and the process of wage erosion in Brazil. For the Representative, Plano Real was essential in enabling Brazil to fight the current international financial crisis in more favorable conditions than other countries.

The other author of the application – Representative Arthur Virgílio (AM) - classified the plan as a “great work”, structured on other two instruments besides currency itself: the Social Emergency Fund, which enabled the untying of resources from the Union Budget to enable the Government to readjust or cut needless expenses, and the institution of Unidade Real de Valor (URV), which worked as indexer for all economic transactions, with mandatory conversion of values based on Dollar.

The Senator highlighted the need of the Country advancing in other reforms in order to ensure that it “does not stand on the way" of economic stability; such as the tax, fiscal, welfare and labor reforms.

Future
As Arthur Virgílio, Fernando Henrique Cardoso said that the economic stability is not enough for the growth of economy. The former President admitted that Brazil is currently respected, but said that in order to keep progressing, it is needed to reach a consensus of what is wanted for the future. In his opinion, the Country lacks respectability, frugality and simplicity. “We cannot keep with such ostentation, with so much waste, so much littleness", he declared. The formation of the Nation, in his opinion, is beyond PAC [Programa de Aceleração do Crescimento] and also depends on savings, instead of consume.

In the sitting, Senator Aloizio Mercadante (PT-SP) defended Lula Government. He said that, although Brazil’s process of stability had been started 15 years ago, the current government contributed to its consolidation. But admitted: “we were not the more balanced critics, as our critics are not nowadays”.

Reporting – Noéli Nobre and Rodrigo Bittar
Editing – Patrícia Roedel
Translation - Grupo Solucion/Thiago Capatti