The president of Brazil, Jair Bolsonaro affirmed on Thursday that, if the pension reform that is being debated in Congress represents a saving of less than 800,000 million reals (close to 200,000 million dollars) in 10 years, the country will end in a situation similar to that of Argentina.
Bolsonaro had breakfast with journalists at the presidential palace of Planalto, while in Argentina markets were shaking and the dollar and country risk were climbing at high speed.
And he said that the 800,000 floor is an account of Economy Minister Paulo Guedes, according to the G1 portal of the Globo network. According to the president, Guedes has told him that a saving in that value would represent a positive “turning point” in the country’s path.
According to Globo, the economic team makes a projection of the State will be able to save 1,600 million reals (about 400,000 million dollars, to the change of this Thursday) with the reform in a decade. The text is just taking its first steps in the Chamber of Deputies and must go through the Senate. But in that way, there may be changes in the text that can reduce the impact of the reform, according to the Brazilian media.
In the meeting with the press, Bolsonaro said that if the reduction in expenses is below 800,000 million reais, “the situation will explode in 2022.”
The controversial reform of the social security system was sent by the government of the far right Bolsonaro to Congress in February, and is the main tool with which it seeks to reduce the fiscal deficit and seduce the markets.
The text, which proposes a tightening of the conditions to obtain retirement, exceeded on Tuesday the first barrier to be endorsed by an overwhelming majority in the Constitution and Justice Commission of the Lower House of Brazil.
Bolsonaro, in power since January 1, thanked in a televised message on Wednesday night, “the commitment” of the majority of the members of that commission and “the commitment” of the president of the Chamber of Deputies, Rodrigo Maia, with whom he had his differences weeks ago with crosses of declarations that made fear the process of the reform.
The project will now have to undergo the analysis of a second commission, which will evaluate it from a political and economic point of view.
In case that second commission approves it, the reform would pass to the plenary session of the Lower House, and only after being supported by a qualified majority of the deputies would it reach the Senate, which would have the last word.