Confidence is warranted: there’ll be no “just carry on” in Brazil

A general election is a Herculean endavour in Brazil: those required by law to vote make up almost 70 percent of its 210 million inhabitants. In October, the Head of State and Head of Government, 513 Federal Deputies, two thirds of the Federal Senate, and the State Governments and Parliaments of all 27 Federal States are to be elected. And the current political situation is exacerbating matters. Popular parties have been deeply shaken in recent years by a broad reappraisal of corruption. Renowned politicians have been or are currently serving prison terms. The fifth largest country in the world is fragmented because the “tried and tested” is no longer an option yet actual novelty is not to everyone’s taste. So it’s unsurprising that the upcoming elections are polarising opinion by the day and throughout the land.

This extraordinary state of affairs is putting Brazil to the test: politics must dare to rethink itself. The economy will have to hold its own for some time in uncertain waters. And, what’s more, Brazilian society will have to find a new common denominator.

The outcome of any election is always uncertain, but one thing is a foregone conclusion: no matter who wins the election, there will be no simple “just carry on.” An ever more open society, a vigilant public, and an economy striving for growth is increasing the drive for political action. Which gives us cause for confidence. As German companies we will continue to require staying power, but Brazil is in a good position to convert its potential into stable growth and to move ahead in the international field.

Foto des LADW Vorsitzenden Andreas Renschler - Volkswagen AG und TRATON SE
© TRATON GROUP

Andreas Renschler

LADW Chairman, Member of the Group Board of Management Volkswagen AG and CEO TRATON GROUP

Sunday Brief N°9

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