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House of Deputies Resolves to Present a New Pension Reform Proposal; Bolsonaro Defends the Original Proposal

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Rodrigo Maia House of Representatives Speaker,

 

The House of Representatives will take the lead in the negotiations on pension reform and produce new text from the amendments and the original proposal, the chair of the special committee on which the matter deals, deputy Marcelo Ramos.

According to him, the new text will bring the modifications necessary to ensure that the proposed amendment to the Constitution (PEC) has the 308 votes necessary to be approved when it is in plenary.

“The rapporteur is going to receive hundreds of amendments and from there he will construct a substitute text,” the commission chairman told Reuters by telephone.

“The Chamber will assume the leading role of making the negotiations from the amendments and the original project in order to amass the 308 votes,” he explained.

According to him, the new text, regimentally called substitute, will not compromise either the fiscal impact intended by the economy minister, Paulo Guedes, of 1 trillion Reais nor the schedule of votes.

But it will not keep in the proposal sections that deal with the capitalization regime and the so-called deconstitutionalization, which would remove from the Constitution part of the social security issues, thus facilitating eventual future changes.

“Capitalization and deconstitutionalization do not pass. So the substitute will differ from the original proposal, “explained Ramos. “It’s just not going to be any different in fiscal power or schedule.”

Earlier, the mayor, Rodrigo Maia, one of the main guarantors of the reform, said that it will be voted in the House plenary until the beginning of July. Maia has positioned itself as one of the main articulators of the proposal in an alternative way to the government’s performance, which has skated to organize a base of support.

The government, meanwhile, understands that the best proposal for pension reform is the one that was sent to the Congress and that the parliamentarians will do their “best job” to deliver a solution to the social security issue, according to the spokesman of the Presidency, Otávio do Rêgo Barros.

The spokesman also said that the change in the leader of the government in the Chamber, Major Vitor Hugo, is not being discussed and that the parliamentarian has the confidence of the president. Vitor Hugo is appointed as one of the responsible for the erosion of the relationship between the government and Congress.

According to leadership, Vítor Hugo, who no longer has the sympathy of Maia, also finds difficulties of interlocution with leaders of the House, mainly of the named Centrao, a political group that brings together deputies from small parties and has given demonstrations of force on the government.