Can BRL 1 billion buy a pension reform?

Author

Gustavo Ribeiro
March 12, 2019 • Reading Time: 6 minutes

In today’s issue: Can Bolsonaro buy a pension reform with BRL 1 billion? Police officers arrested for the murder of Marielle Franco. 

Can BRL 1 billion buy a pension reform?

President Jair Bolsonaro has resorted to the methods of “old politics” of which he has been so critical, announcing that the government will authorize the financing of congressional

budgetary amendments that amount to BRL 1bn. These are instruments that give congressmen some discretion over the federal budget, which they normally apply in their constituencies. It has also become a classic bargaining chip in Brasília politics, as administrations control this faucet of public cash to sway parties on important votes.

According to the government, budgetary amendments blocked since 2014 amount to BRL 3bn—”which could be granted if they meet bureaucratic criteria.” Which really means: if Congress passes the pension reform. To put pressure on the administration, parties have said that no action will be taken on the pension reform until a bill concerning military pensions is presented. The government promised to submit its proposal before March 20.

Disgruntled evangelicals

The evangelical congressional caucus—pivotal in President Bolsonaro’s elections—is reportedly dissatisfied with the government. Recent firings of officials vouched for by evangelicals in Congress have sparked outrage, and led members of the caucus to accuse Mr. Bolsonaro of distancing himself from the “values which got him elected.” Evangelical congressmen (91 of 513 seats) will meet tomorrow to discuss a possible boycott to the pension reform.

Police officers arrested for the murder of Marielle Franco

Rio’s police arrested two law enforcement agents this morning, suspected of being involved in the assassination of Marielle Franco one year ago. According to early reports, the two men are believed to be the ones who shot Ms. Franco and her driver, Anderson Gomes, killing both, and drove the getaway car. The operation started today at 4 am, and the police are carrying out 34 search and seizure warrants.

  • Remember the case: On March 14, 2018, Marielle Franco was on her way home when her car was cut off by a silver Chevrolet Cobalt, from which 13 gunshots were then fired. Four of them hit Ms. Franco, and three hit her driver. The Cobalt fled the scene, without stealing any of the victims’ belongings. In May 2018, a key witness told the police the crime was carried out by “The Office of Crime,” arguably the deadliest and most secretive death squad in Rio de Janeiro.

  • The involvement of state agents: “The Office of Crime” is a branch of Rio’s oldest urban militia and is led by former and current police officers. That would explain why the weapon used in the crime matches items that were stolen from the police in recent years. It would also justify why some investigators skipped obvious steps, such as discarding key witnesses. Institutions such as Amnesty International demand the probe into Ms. Franco’s killing be subjected to external oversight.

  • The suspects: Police reportedly arrested Ronnie Lessa, a retired cop who suffered an assassination attempt in April 2018 (which the police believe was an effort to “tie up loose ends” by the militia), and Élcio Queiroz, who was kicked out of the force for undisclosed reasons. The former was allegedly the gunman, while the latter drove the gateway car.

  • Podcast:The rise of urban militias in Rio de Janeiro

What else you need to know today

  • Disaster. Storms have once again created major problems for the city of São Paulo. Floods killed 12 people, several others were rescued with jet skis, and the Greater São Paulo area lost BRL 45m in damaged infrastructure. While rainfall was exceptionally intense, the region has spent only 41% of its budget for flood prevention measures since 2016.

  • Financial aid. The government’s financial aid plan for states is ready—and it will demand on local administrations promoting budget cuts above inflation every year until 2022. The Ministry of the Economy is now awaiting a Supreme Court trial that will rule, among other things, if public administrations are allowed to slash public servants’ hours and reduce their salaries. Only one Brazilian state (Espírito Santo) has been awarded the top rate for ability to pay.

  • Diplomacy. Next week, when President Bolsonaro visits Donald Trump in Washington, he is expected to name Brazil’s next ambassador to the U.S. There are two frontrunners: Nestor Forster, a diplomat supported by Foreign Minister Ernesto Araújo, and Murillo de Aragão, who owns a political consultancy cabinet. Mr. Aragão has a good relationship with the government’s military wing, but has many American customers, which could generate conflicts of interest.

  • Trade. Brazilian automakers are lobbying for the government to slap import quotas on cars from Mexico. On March 19, per an accord between the two countries, both would enjoy free trade on the automobile market. But, as international sales of Brazilian produced cars is down, companies want to preserve their market reserve locally.

  • Privatization. The Federal Accounting Court found problems with the first infrastructure privatization project of the Bolsonaro era. Studies of the project for a roadway between Minas Gerais and Goiás were poorly done, say auditors, and toll fare rules are overly advantageous to companies to the detriment of drivers.

Reply

or to participate.