3 October 2019

 

Predictions

  • President moves closer to achieving landmark pension reforms, which will be major political victory and will significantly boost economy
  • Government has significantly watered down reforms in order to gain…
  • Senate’s likely final approval of reforms will lead to increased…

 

Analysis

Brazil’s Senate approved on 1 October, in the first of two crucial votes, a bill to overhaul the state pensions system, President Jair Bolsonaro’s main economic policy proposal. The reform has long been demanded by businesses as essential to reducing the budget deficit and boosting economic growth. The change, which requires a constitutional amendment and therefore approval by a three-fifths majority, was backed by 56 of the 81 senators, a comfortable margin above the 49-vote threshold. This followed the lower house approving the measure in July. The final, second vote in the Senate is scheduled for 15 October.

Foreign investors and businesses see Bolsonaro’s plan to reform the…

 

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