'Brazil needs political reform, modernisation'

Brasilia, July 31 (IANS) Brazilian President Dilma Rousseff said Wednesday that the country needed political reform and modernisation to limit state bureaucracy and spur economic activity.

At a forum held at the headquarters of Brazil's National Confederation of Industry to hear the proposals of the country's presidential candidates, Rousseff, who is running for re-election in October, presented her ideas for a second term.

"I have no doubt that Brazil needs political reform. Not only do I agree, but I believe that political reform is only possible with popular participation," Xinhua quoted Rousseff as saying.

The president originally proposed comprehensive political reform to modernise the government in June 2013, following a wave of anti-government protests across the country. But she failed to garner Congress' support.

Rousseff also defended the state policy of giving priority to Brazilian-made goods in public sector purchases, denying the measure was "protectionist."

She said her government promoted tax breaks to spur competition in the industrial sector and the industry should not be left to "the whims of the market".