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Bolsonaro Wants ‘National Pact’ For the Economy

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Social Security Reform text will be presented to Congress in February; president speaks on ‘structural reforms’ to improve accounts

In his first speech as president, Jair Bolsonaro promised that the country will not spend more than it collects and that it will make reforms, but did not specifically mention that of the Social Security. “We will carry out structural reforms, which will be essential for the financial health and sustainability of public accounts, transforming the economic scenario and opening up new opportunities,” said the president in the National Congress plenary.

The tightening of the rules for retiring in Brazil is one of the most emergency measures that should be adopted by the superminister of the Economy, Paulo Guedes. The proposal for pension reform, however, should only be sent to Congress in February, when the new deputies and senators, elected in October last year, take office. Earlier, Guedes will announce other measures such as tax simplification and debureaucratization.

The forecast is that the rhythm of the INSS will reach R $ 218 billion in 2019. In the pension system of the Union’s servers, where the rules are even more benevolent, the deficit will be another R $ 87.5 billion. The account does not include the hole in the accounts of states and municipalities.

According to federal deputy Eduardo Bolsonaro, the president’s son, the government has not yet defined the terms of the new proposal and must leave the details “in secret” to avoid not repeating the same mistake as the former president’s team Michel Temer, who – according to him – could not vote the issue after the negative campaign against the proposal.

“If you do not explain welfare reform correctly, we know that the people, who will do everything to stop the government, are going to travel all over Brazil, telling a lie and they are a stick. are going to have to retire at 80, 100 years old, “he said. “One of the things that made it uncomfortable to vote was precisely this publicity, so when the Social Security reform comes out, everything will have to be sharp to clarify the people and the social network,” he added.

Vice President General Hamilton Mourao told the Broadcasting that the idea is to take advantage of some of the reforms made by President Michel Temer with some changes, including transition rules (which include a “toll” that active workers need comply with the new rules) and the creation of a capitalization scheme – by which policyholders contribute to individual accounts, capitalized to pay the benefits later.

Mourao also defended that the pension reform be sent to a single, and not sliced, vote, as has already been said by Bolsonaro himself. But on Tuesday, the future minister of the General Secretariat, Gustavo Bebianno, once again said that the proposal could be “sliced” for a strategic issue. “Strategically it is the most probable,” he said when arriving at the Palace of the Planalto for the ceremony of transmission of the presidential track.

According to Bebianno, the text of the reform is still being discussed and there are political issues involved. “We have to take the temperature of the new Congress, there are technical and political aspects, but we will get there,” he said.

Bebianno added that the proposal is based on what is already being processed in Congress and that there was expectation of approval of a part of the text still in 2018, which did not happen. “It is being designed, improved what we already had, it was our desire in the campaign to approve social security measures before the end of this legislature, but time passes very quickly and was not possible,” he lamented.

The main point of Temer’s proposal is to stipulate as the minimum age to be entitled to retirement 62 years for women and 65 years for men, after a period of two decades of transition. Under current rules, 35 years (men) and 30 years (women) of contribution are required to retire by contribution time.

Eduardo Bolsonaro said that the government should use other controversial themes to “feel” the loyalty of the allied base. He cited, as an example, issues related to public safety. “Suddenly, a vote to feel the thermometer of Congress, since there was a renewal. Like, for example, public safety issues, some weaponry.”