"... At a time when Brazil’s economy has slowed significantly there is little enthusiasm in government for broad wage hikes, especially for a public sector that many say is too large, and already enjoys significantly more benefits and job security than the private sector. “Any agreement should include a reform of the public sector,” said Anthony Mueller, a professor of economics at the Federal University of Sergipe. “The Brazilian public sector must be drastically reduced in order to save expenditure.”
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“The government made the error of not rapidly and forcefully responding to the demands,” said Professor Mueller. “The leaders of the strike miscalculated the resolve of the government to keep the budget deficit down.”
“In the end both sides lost,” he added. “Yet most of all it was Brazil that lost.”
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