Brazil is going through a major problem that prevents it from giving priority to the bilateral relationship but when it comes to freezing or putting the relationship on a back seat, it refuses to do so because deep down the country knows well that both itself and Argentina cannot do without the other. I think what happened in Brasilia follows this line. Minister Cavallo has so far been clear as to his concerns over the new economic policy, where even a dose of unilateralism in terms of the Mercosur has already been showed. But when it comes to taking this to the last consequences, it also tries to ease its stance. That is, we will not succeed much in a positive agenda but at least we are managing to neutralize the negative one.

Uruguayan President Jorge Batlle issued harsh criticism toward Brazil and Argentina in relation to the economic policies both countries have been developing.

Uruguay has not been satisfied with the Mercosur process. It objected its stage of institutionalization, obviously the country dislikes the existing power concentration between Argentina and Brazil with the handlings of the Mercosur and as so many other countries in the region they consider the FTAA alternative as a negotiation tool within the Mercosur. Now, if one looks at the profile of the Uruguayan exchange, from the perspective of its relationship with our economies, it is not clear yet the extent to which this country may come up with an independent alternative in the current context.

Regarding the power crisis, can it affect the country’s economy?

Brazil is going through hard times because the mood of society gets too sensitized within a framework of power crisis. This takes place in a time when the economic growth expectation was very high and also occurs before next year’s presidential elections. In fact, we will not solve this issue before the elections, thus greatly affecting the country’s political trends. We are clearly opting for the continuity of a growth-oriented economic model but it is essential to improve the existing infrastructure.

How would you describe the political framework of Cardoso’s administration in the wake of the corruption allegations against the government that sparked the recent Senate resignations?

The government is in a weaker position with quite limited public opinion support related to the recent events and the crisis prompted by the ruling coalition between the Brazilian Social Democratic Party (PSDB) and the Liberal Front Party (PFL). There are no doubts this is a different scenario almost unpredictable compared to that of Cardoso’s first term.

At the same time, the PSDB is a party with results to show, mainly in the field of education and health, where transforming public policies have been developed. To what extent can this be valued, within a pre-electoral context, it is hard to know. With a view to the presidential elections, the political forces are now organizing with a view to the second electoral shift as the current framework greatly favors the PT.

Who has today more possibilities to win?

There is no updated information to answer this question but I can assert the political-ideological scope of political options in Brazil has changed a lot since the last elections: today we move among many alternatives that range from the center-left to the left. There are no viable right or center-right options due to the corruption charges and the social debt and also due to the series of problems the government now faces, that produces a growing PT presence in the municipal government and its growth as party force.

Thinking of the recent crises related to governmental corruption that affected the different Latin American countries –with the examples of former President Menem’s arrest in Argentina and the charges against Cardoso in Brazil- do you think this is a problem particularly affecting the region?

Our democracies are fragile but they have showed the necessary strength to go on. Clearly, their consolidation still needs a more transparent process, of deepening people’s capacity to make their values, interests and representation be respected. There is crisis in this sense, the party political system is highly questioned right now everywhere and I believe each one of us has the agenda in this process. Latin America is deepening and consolidating its democracies according to its political culture and history. This problem affects each country according to its specificity but we are all on the same boat of democratic consolidation. There is no doubt about it.