On the eve of the announcement of a tough austerity programme, the Brazilian President, Fernando Henrique Cardoso, has called for national unity to rescue the country's battered economy.

Speaking on national television, Mr Cardoso repeated that the government had to cut public spending and increase taxes.

The BBC Brazil correspondent says President Cardoso was trying to reassure people but also stress the urgency of fiscal reform to promote growth and restore confidence in the economy.

However, our correspondent notes that Mr Cardoso, who was re-elected earlier this month, faces considerable opposition in Congress in pushing through the necessary reforms.