LatinNews Daily - 13 November 2020

* Brazil’s Economy Minister Paulo Guedes has said that if the country sees a second wave of coronavirus (Covid-19) infections, then the emergency basic income (which was implemented in April to help the most vulnerable weather the effects of the pandemic and is due to end in December) would “certainly” be maintained. “We will have to react [if there is a second wave], but it is not the plan A”, Guedes said during an online event organised by the Brazilian association of supermarkets (Abras), adding that a state of calamity would be declared again if necessary (this measure, implemented to allow the federal government to increase spending to tackle the pandemic, is also due to end in December). The discussion over balancing necessary aid and economic stimulus measures with Brazil’s need for fiscal responsibility has dominated political and economic circles in recent months. Guedes is a fierce defender of fiscal austerity but these latest comments have prompted renewed concerns that the Brazilian government will seek to circumvent a constitutional spending cap in 2021. 

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