Brazil’s Economy Minister threatens to quit
Just two days before protests in support of President Jair Bolsonaro promise to escalate political tensions (more below), weekly magazine Veja publishes an interview with Economy Minister Paulo Guedes that could speed up this crisis. Here are the main takes from the interview:
If Congress passes a pension reform creating less than BRL 800bn in savings for the next 10 years, Mr. Guedes says he’ll resign. The move could irritate Congress and puts more pressure on Mr. Bolsonaro—as he was the president’s surety among markets.
The Economy Minister said the pension reform must pass in the lower house by the end of next month. Otherwise, Brazil will face an economic collapse as early as 2020.
Mr. Guedes also suggested Brazil could follow in the footsteps of Argentina, which is undergoing a severe financial crisis (with a 55% inflation rate over the past 12 months), or even Venezuela, which is suffering from the worst humanitarian crisis of the Western Hemisphere.
Mr. Guedes is right to defend the pension reform and insist on the risks Brazil takes if...