As Europe continues to suffer from a sovereign debt crisis, Brazil’s economy is being hit hard and President Dilma Rousseff has said that her country is likely to join a rescue plan. The news comes as the European Commission announced that it will soon present plans on jointly issued eurozone bonds but warned of no simple solution to the crisis.
Rousseff complained that bickering between politicians in developed nations is hampering any revival of their economies. “There is not an international solution to this problem. Since there’s no possible form of solution to the euro region problem, then what we need is that that they decide and come up with a framework for a rescue,” Rousseff said.
Word from India seems to suggest that emerging markets are similar in their own efforts in throwing together an ad hoc plan to aid Europe. “The idea has been thrown at us by the Brazilian finance minister,” R Gopalan, a senior Indian official said to the Financial Times.
Sounds like an emergency move by Mantega (to pursuade the BRIC countries to help Europe). In the mean time, Brazil’s real currency extended losses against the U.S. dollar midday Wednesday – the real weakened past the mark of BRL1.73 to the dollar.