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Economist Paulo Guedes Defends Pension Reform Approval This Year

Economist stressed that he supported the proposal before starting to coordinate the economic program of Bolsonaro and would not change his mind

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The economist Paul Guedes, chief economic adviser to the president-elect Jair Bolsonaro, defended the approval of the proposed pension reform that is in Congress this year.

The economist stressed that he supported the reform before coordinating Bolsonaro’s economic program and would not change his mind. According to Guedes, however, further reforms will be necessary in the next government.

“I have spent two years saying approve the pension reform. Obviously, I can not just say’ do not approve the pension reform,” Guedes said in an interview with journalists shortly before entering the house of businessman Paulo Marinho, in Rio, where he is meeting with Bolsonaro.

According to Guedes, a new system will be proposed for future generations. “We are going to create a new pension plan with a capitalization system, but there is an old pension plan that is there. So, besides the new labor and social security system that we have to create for future generations, we have to fix the one that is there,” said the economist.

Bolsonaro’s aide did not detail negotiations with the Michel Temer government on approving the current proposal for reform of Social Security as it is in Congress. To resume pension reform later this year, it would be necessary to suspend federal intervention in the area of ​​public security in the State of Rio.

Guedes said only that he had already met with the Secretary of Social Security of the Ministry of Finance, Marcelo Caetano, whom he called “excellent technician” to examine the current proposal.

“Then I had meetings with the brothers (Arthur and Abraham) Weintroub who are making a proposal quite similar to Chile,” said the aide, praising the Chilean pension system model that fostered capital accumulation and increased productivity.

Guedes gave an interview for almost half an hour, in front of the house of Marinho, a mansion in the Botanic Garden, south zone of Rio. While speaking to the press, Bolsonaro’s entourage arrived. The president-elect drove into the mansion’s garage.

During the arrival of Bolsonaro, Guedes interrupted the interview. After being called in the street by Marino, he entered the house. Before, he returned to the subject of Social Security, to defend the approval of the current proposal of reform. For him, the sooner to retire the Welfare, the better.

“A year and a half ago, when the president of the Chamber of Deputies, Rodrigo Maia, came in, it would have been better, before the end of the year, is good too,” said Guedes.

According to Guedes, the Brazilian pension system has “bombs”: the first is demographic, the second is to mix social assistance with work retirement, the third is the tax costs on the employees’ payroll the fourth is the fact that the social security system not to “bring capital into the future”.

Arriving for the meeting, Gustavo Bebianno, former president of the PSL and one of the coordinators of the campaign of Bolsonaro, also defended the reform of the Social Security. According to Bebianno, the current proposal is better than nothing.