Dilma's doubts

On the surface, trade ties between the EU and Brazil have never been better. In the first half of this year, exports from Brazil to the EU totaled 18.5 billion euros ($24.5 billion).

However the euro crisis has put a damper on bilateral ties. Speaking at the EU-Brazil summit in Brussels on Tuesday, Brazil's President Dilma Rousseff criticized Europe's efforts to tackle the problem.

"History has shown us that the crisis can only be overcome with the help of specific growth programs. We need a set of policies that combine economic stability with socio-political measures and lead to profits and jobs. Austerity measures alone will not do the job," she said.

And, she told EU Council President Herman van Rompuy and European Commission chief Jose Manuel Barroso, she was more than happy to offer Brazil's past experiences as a guide to help the EU out of its crisis. "You can count on Brazil," she said, without, however, offering any further details on the nature and scope of Brazil's support.

Both Rompuy and Barroso praised Brazil's economic progress. "Brazil as a regional power has added value for the EU and the rest of the world," Barroso said.

He also pointed out that the EU was Brazil's leading trade partner and the biggest investor there. "Direct investment in the Mercosur countries [Argentina, Brazil, Paraguay and Uruguay] is more than the combined total of Russia, India and China."

Still, the free trade agreement between both sides is still on hold, despite European efforts to gain better access to South American markets.

Barroso also hinted at a "more just and multilateral world order," however he sidestepped the issue of Brazil's demands for a permanent seat on the UN Security Council.

European praise

Around 20 bilateral agreements have been signed since the beginning of the strategic partnership between Brazil and the EU and more followed on Tuesday in the areas of tourism and science.

For his part, van Rompuy said that the EU considered Brazil to be a "decisive partner with a growing global influence." He assured the Brazilian government that Europe would do all it could to overcome the financial crisis and to strengthen European institutions.

And he was full of praise for Brazil's efforts. "Brazil's success is impressive, thanks to its economic stability and strength that it has shown over the past few years. It can now boast balanced growth and has succeeded in better distributing revenue. Brazil's future looks bright," he said.

Meanwhile President Rousseff appealed to the EU to act urgently to resolve the current crisis, pointing out that failure to reach a political consensus had "put the world in this problematic situation." At the same time, she made the case for her government's progress in several important areas. "We have intensified our efforts to fight xenophobia, torture and human rights abuses," she said.

On immigration, a highly sensitive issue in Europe, she highlighted the fact that her government had given legal status to 100,000 immigrants, "who have come to Brazil to start a better and more dignified life."

Author: Nadia Pontes / rm
Editor: Nancy Isenson