At a conference in Palermo

Friday, September 11, 2015

Lula slams New York Judge Griesa for issuing pro-holdout rulings

Former Brazilian president Luis Inácio Lula Da Silva meets with President Cristina Fernández de Kirchner yesterday.

Former Brazilian president Luis Inácio Lula Da Silva yesterday slammed New York District Judge Thomas Griesa for his intransigent stance on Argentina’s sovereign debt and criticized financial markets following Brazil’s loss of “investment grade” status by US ratings agency Standard and Poor’s.

“A US judge is responsible for the future of millions,” Lula said, denouncing Griesa’s influence on the ongoing dispute between President Cristina Fernández de Kirchner administration and the “vulture” funds, as he addressed the opening of the third International Congress on Social Responsibility, held at the Rural Society in the Buenos Aires City neighbourhood of Palermo yesterday.

The former president also took aim at the widespread implementation of austerity policies in the wealthier nations and beyond which, he said, had repeatedly proved counter-productive.

“At the first sign of crisis they start talking about austerity. All the experiences of austerity have led to an impoverishment of the affected countries,” he said, adding that, rather than balance the economy and reduce national debt, the opposite has taken place. “All countries that went through austerity increased their public debt.”

In Brazil, current President Dilma Rousseff — handpicked by Lula to be his desired successor in 2011 — has imposed significant spending cuts amid a looming economic recession in an effort to appease global investors.

Regional integration

Lula, a former trade union leader who served two consecutive terms as Brazilian President between 2003 and 2011, also praised the greater integration achieved by successive Brazilian and Argentine governments.

“For the first time (under late former president Néstor Kirchner) Argentina and Brazil understood that the two countries are inseparable,” he said. “We have differences, but in politics I am proud to say that Brazil and Argentina have built the most significant relationship ever between the two countries. And if this continues, Latin America will be united.”

He also praised his administration for the growth that Brazil registered at the turn of the century.

“We achieved a small miracle with the policies of income transfers, that were for some handouts or populism. We made it so that millions of people for the first time could buy the necessary food for their children. The first thing I did was bring all the ministers to the slums so they could see how people lived. I knew that if it improved the lives of the poorest everyone wins, companies included,” he said.

Speaking to the packed auditorium for more than 75 minutes, Lula took aim at the political leadership of the more powerful nations and their responses to the global financial crisis.

“In April 2009 at the G20 summit in London, we decided to restore growth, employment, reform the financial system and reject protectionism,” he said. “No country fulfilled those promises. Rich countries adopted protectionism to prevent poor countries from Latin America and others from competing.”

Herald with Télam