More Corruption Allegations Mean Brazil Pension Reform Dies Another Day

Brazil’s pension reform, which no one in their right mind believes is passing congress this year, got yet another death sentence on Monday. Lower House Speaker Rodrigo Maia said this month was a no-go for entitlement talks. Maia blamed new allegations of corruption against President Michel Temer.

“I think that with another example of foul play that we are hearing about in the media makes it difficult for us to pass any proposals for changes to the constitution until the end of this month,” Maia said, adding that just because pension reform, which requires a constitutional amendment, is dead this month (shocker!), it doesn’t mean other measures cannot be passed. One in particular is changes to Brazil’s fiscal deficit target, allowing for the government to spend some money to keep the lights on and the retirement funds paid. This one will be big.

Pension reform is the biggest, blockbuster reform move the Temer government promised to deliver. But with ongoing criminal investigations of bribery and influence peddling concerning a whole host of congressional leaders all the way on up to Temer himself, both branches of government can be likened to chickens running around with their heads cut off.  To date, Temer has managed to pass some key measures, including changes to oil and gas auctions that allow for greater foreign ownership of deep water wells, and changes to Brazil’s somewhat draconian labor laws, to name a few.

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