This week, we cover Congress’ return from vacation. The external shocks that could plunge Brazilian markets this week. How Brazilian markets performed. Also, what you should be looking out for this week—and the most important facts of the previous seven days.
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Congress is back. What to expect in 2020
February marks the start of the legislative calendar in Brazil—and Congress will have plenty on its plate this year. After passing the pension reform and the anti-crime bill in 2019, the main issues to be discussed are two other major reforms: one simplifying Brazil’s tax system, and another overhauling its civil service structure.
Why it matters. Both reforms are pivotal for Brazil to regain growth and are the main priorities of Economy Minister Paulo Guedes.
Tax reform. A committee in Congress has already started to work on the matter, analyzing a proposal to unify several taxes on goods and services and simplify Brazil’s labyrinthine tax framework. House Speaker Rodrigo Maia also defended a reorganization of income taxes, without changing the tax burden, however. The Economy Ministry is expected to present its suggestions on the matter soon.
Administrative reform. The government...