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Weekly Report - 15 January 2015 (WR-15-02)

BRAZIL: Tax rises imminent, but no “bagful of horrors”

Can President Dilma Rousseff implement her promise of fiscal responsibility without triggering social unrest? No matter how many times her new economic team warns of the pain to come, Rousseff’s real test will be when prices, or taxes, start to shoot up. Joaquim Levy, the new finance minister, has made it abundantly clear that taxes will have to rise, but he has also promised there will be no “bagful of horrors” for Brazilians in Rousseff’s second term.

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