SAO PAULO, March 25 Brazilian state governor
Eduardo Campos, a probable candidate for president in the
October election, said the implementation of long-term goals for
budget spending and debt reduction are necessary to restore
confidence that has been eroding in Latin America's largest
In a speech at a Council of Americas event in São Paulo,
Campos, the center-left governor in Pernambuco state, suggested
his commitment to clear fiscal policy goals in order to enhance
transparency. The presidential campaign will only begin after
parties officially nominate their candidates, around June.
His remarks came a day after ratings company Standard and
Poor's lowered Brazil's sovereign debt rating to "BBB minus,"
the lowest investment-grade ranking, in the wake of a
deterioration in public finances. Campos said the S&P decision
underscored the failure of efforts by President Dilma Rousseff's
administration to postpone any spending reduction ahead of the
"Changing parties in power is necessary. A change in
government could give citizens the necessary reassurance that
goals will be delivered," Campos said in the speech. He declined
to elaborate on which of the potential goals he would implement.
According to polls released over the past three weeks,
Rousseff would beat any potential challenger outright in the
first round of the ballot, although support for her has been
slipping marginally. Campos, the grandson of legendary Brazilian
socialist leader Miguel Arraes and who may run on a more
business-friendly platform than Rousseff, is currently third in
polls, with voter support around 7 percent to 8 percent.
Economists, company executives and investors have lashed out
at Rousseff's policy decisions to renegotiate contracts with
electricity companies, forbid state-controlled oil company
Petróleo Brasileiro SA from raising fuel prices and
use state-run banks to expand credit at borrowing costs that
fail to cover default and other risks.
(Reporting by Guillermo Parra-Bernal; Editing by Ken Wills)