In today’s issue: Pension reform plan to be defined today, says Bolsonaro. São Paulo on alert after crime bosses prison transfer. Poultry scandal.
Pension reform plan to be defined today, says Bolsonaro
President Jair Bolsonaro has left the hospital after 17 days, and promised to reach a consensus today on the government’s pension reform proposal. Investors have reacted negatively to the possibility of a minimum retirement age of 57 for women and 62 for men—below what economy minister Paulo Guedes wanted (65 for all). At 3 pm this afternoon, the president will meet with Mr. Guedes and Chief of Staff Onyx Lorenzoni—who, more often than not, seem to be at odds with one another.
Whoever wins the battle for the president’s ear should determine whether Mr. Bolsonaro will go for a less controversial—but also less effective—reform, as defended by Mr. Lorenzoni, or a more austere bill, backed by Mr. Guedes, which would come up against more resistance in Congress. Depending on the minimum age set by the president, the transition period to the new system could last up until 2030.
Ratings agency Moody’s believes a reform won’t come before the third quarter of 2019. “It could be postponed even further if...