The Jair Bolsonaro administration has promised to present Congress with a broad pension reform bill this week. Despite being just over a month in office, the government is not looking to hang about—and with good reason. For one, because the pension system reform is one of the few reasons why market investors jumped on the Jair Bolsonaro bandwagon in last year’s election. Meanwhile, governors are desperate for a review of pension benefits, as the ratio between retired and active servants is now at 9 for every 10.
But for Jair Bolsonaro himself, the main reason to kick on with the reform will be the need to diverge attention away from the major political crisis within his government—with the president’s Secretary General accused of electoral fraud.