May 17, 2021

Bolsonaro opens the possibility to a pension reform by parties in Brazil

Bolsonaro opens the possibility to a pension reform by parties in Brazil

The elected president of Brazil, Jair Bolsonaro, said today that the reform of the pension system can be presented by parties and that the first issue that would lead to Congress would be the establishment of a minimum age.

"It does not advance anything to have an ideal proposal that is going to stay in the Chamber (of Deputies) or in the Senate (…) Then, the idea goes around (in parts), starting with age, attacking the privileges and advancing in that pattern, "Bolsonaro said at a press conference in Brasilia.

The president-elect confirmed that the idea is "to present a proposal to amend the Constitution" with the reform of the retirement system, but one "with possibilities of being approved".

The current ruler Michel Temer, whose term ends on January 1, when Bolsonaro will be sworn in, tried unsuccessfully to approve a pension reform that was paralyzed in Congress for lack of support.

The financial market, employers and various international organizations consider it essential to approve this reform to rebalance public accounts and help reverse the country's bulging fiscal deficit.

The deficit of the pension system "really is a reality", "grows year after year" and "we can not leave Brazil to reach a situation like that of Greece to take providence," he said.

He also commented today that "the tendency to start with age is quite strong" because "it is less difficult" to approve.

Currently, the law allows women to retire with 30 years of contributions and men with 35 without there being any age limit for it, so there are cases in which people with just 50 years can already receive this benefit.

However, the president-elect will need expressive support from Congress to approve any reform presented as an amendment to the Constitution, since this type of project requires the votes of 3/5 of both deputies and senators.

Bolsonaro, a far-right nostalgic of the military dictatorship (1964-1985) and uncovered as a fervent liberal, is currently in Brasilia to continue the transition process and in this regard, plans to meet with the parliamentary groups of some of the more traditional parties.

The elected governor received today the congressmen of the Brazilian Democratic Movement (MDB), a formation that Temer leads, and asked for his support to approve the reforms he promotes during his administration, according to comments to the Brazil Agency, some participants of the meeting.

At the meeting, Bolsonaro praised the labor reform, approved by the Government of Temer, and even defended a deepening of it to end "degrease" labor relations and unlock the arrival of investment in the country.

However, he did not specify what alterations he would make in the text, which at that time was widely rejected by unions and opposition, considering that it opened the doors to a reduction in labor costs.


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