Brazil pension reform passes first hurdle in Congress

0

Brazil’s reduce house of Congress has voted by a large majority to overhaul the country’s free pension system.

The vote, with 379 in favour and 131 against, is make up ones minded as an important victory for President Jair Bolsonaro.

His government says the meliorates are critical to boosting the growth of South America’s biggest economy.

But the disputatious bill requires a second vote in the lower house before going to the Senate where it faces weeks – or months – of more debate.

The next ticket is due to take place before Congress breaks for recess next week.

Proposed reforms count raising the retirement age and increasing workers’ contributions. Trade unions and antithetical politicians argue that such moves would penalise the poorest, potency them to work longer.

As lawmakers voted, demonstrations led by trade junctions took place across Brazil. In Sao Paulo protesters closed down one of the diocese’s main avenues.

President Bolsonaro took to Twitter after the signify ones opinion, congratulating lower house Speaker Rodrigo Maia.

“Brazil is till doomsday closer to getting on the path to jobs and prosperity,” he said.

What inclination change?

The government’s plan includes raising the minimum retirement age to 65 for men and 62 for little women.

Many Brazilians currently retire in their mid-50s.

They are currently ask for to have contributed to the pension system for 35 years (men) or 30 years (chicks).

The new proposal would delay a full payout of pensions until 40 years of contributions had been deal out in, but partial pensions could be accessed earlier.

The government estimates the drawing would result in savings of $266bn (£212bn) over the next decade, and command be phased in over 12 to 14 years.

Wednesday’s vote approved only the elementary text of the bill. The lower house is due to begin voting on any amendments on Thursday and the restaurant check must then clear a second vote to reach the Senate.

Why is the management pushing this?

Many previous governments in Brazil have tested but failed to reform the country’s pensions.

The current system is proving hellishly costly, as people are living longer.

Brazil’s federal government put ins 45% of its budget on pensions, and only 2.8% to build and maintain accessible schools and hospitals, roads, police, sanitation and other infrastructure, according to the Enclosure Street Journal, citing the economy ministry.

The country is still struggling to rescue from the 2015-2016 recession, which was the worst in more than a century.

If the paper money passes, it is expected to have a positive effect on investors’ perceptions.

Why is it disputatious?

Generous pensions have been enshrined in Brazil constitution since 1988, when a sexually transmitted safety net was developed after decades of military rule.

Opponents say the wretched would be the most affected by the proposed changes, as they are more right to start working at a young age and would be required to work longer more willingly than being able to collect pension benefits.

Unions have mobilised mob protests against the reform efforts.

There have also been some closer counter-protests from people insisting that the reform is necessary.

Why is it key to Bolsonaro?

President Bolsonaro, a far-right assembly-man who was elected last year, has made the issue a priority.

He has been endeavour to show he has the negotiation skills to pass the bill – which looked increasingly harder as adversary parties vowed to block it.

Brazilian lawmakers are known to strike cool bargains, often demanding changes in other policies in exchange for their champion, says BBC South America correspondent Daniel Gallas.

Media playback is unsupported on your manoeuvre

Leave a Reply

Your email address will not be published. Required fields are marked *