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States Governors Commit To Pension Reform

Group delivers letter to Bolsonaro with other priority guidelines

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The approval of the Social Security Reform was presented on Wednesday, May 8th, by the President of the Republic, Jair Bolsonaro, as an essential condition for a new model of federative pact to leave the paper. The agenda, a priority for governors, who are waiting for a decentralization of Union resources to rebalance the accounts of their states, was discussed at a breakfast, promoted by Senate President Davi Alcolubre, with the presence of of 25 of the 27 governors or vices, of leaders of the Senate and of the chief minister of the Civil House, Onyx Lorenzoni. The president of the Chamber of Deputies, Rodrigo Maia, also participated in the meeting.

“President Bolsonaro expressed the budgetary and investment capacity of the country at that time and that one thing is always tied to another. It is exactly this effort to vote for the pension reform that this may be the first step to unlock the economy and can be carried out item by item from a new Social Security and a new budget scenario,” said the leader in the PSL in the Senate, Major Olímpio.

According to the President of the Senate, all governors, even the opposition governors, such as those in the Northeast, who advocate changes, for example, in points of the proposal, such as rural retirement and capitalization, have pledged to work together with their approval of the reform, but for this they delivered a letter, signed by all, as six items that, according to them, make up a minimal agenda, which needs to move parallel to the discussion of the new Social Security in Congress. “If you really want to redistribute the revenue, you need to have a cashier. But [it’s fundamental] that [pension reform] is the main focus of rebalancing the state’s accounts,” the Senate President said.

Minimum Schedule

Among the points of the letter is the so-called Mansueto Plan, which must be presented by the economic team and deals with the fiscal recovery of the states. The governors also want changes in the Kandir Law, restructuring of the Fund for the Maintenance and Development of Basic Education (Fundeb), securitization of state debts, renegotiation of the onerous assignment of oil and the redistribution of the State Participation Fund (FPE) , the latter by means of a proposed amendment to the Constitution.

While recognizing the importance of the Social Security reform and opening a channel for dialogue between states and the Federal Executive, for the governor of Maranhao, Flavio Dino, reform and the federative pact are autonomous matters. “We do not accept a blackmail approach, an approach that turns that into a takeover, because they are different themes. Pension reform is a long-term issue of interest to the federal government, of course, to states and municipalities. We do not accept the idea of ​​how the thing is conditioned to another, “Dino told reporters.

The governor of Rio Grande do Sul, Eduardo Leite has rejected the criticism that there is going on here by the government. Leite evaluated that stopping the growth of the social security deficit is fundamental for the Union to be able to share the assets. “I do not condition welfare reform on other measures, but of course we expect the federal government will not appropriate other future revenues and share this with other federal entities.”

Mr. Leite recalled that the state of Rio Grande do Sul is in the process of tax recovery. “We depend very much on this negotiation with the federal government, but even so, we are negotiating in these terms that I support the reform since they approve a regime.” Understanding how legitimate, how correct the position of the federal government that can not make a business from father to son.You have to treat the States with the right line that allows the country not to lose credibility, “said Eduardo Leite.

Another governor, Ibaneis Rocha (DF), assessed that the vast majority of governors have no control over their seats, and so does the federal government itself given the discussions generated within the president’s own party. “We’re going to have to have a very large conciliation exercise, of conversation. I think that the policy will now show itself in a very real way, in the formation of this parliamentary base that makes possible the approval of the reform with the National Congress. “