The Transition PEC, which proposes to change the Constitution to make Bolsa Família viable at R$ 600 next year, was filed in the Federal Senate by the elected government of Luiz Inácio Lula da Silva (PT).
The text maintained the original proposal to remove R$ 175 billion from the spending ceiling and leave a surplus of R$ 23 billion for investments, totaling R$ 198 billion. Even so, interlocutors of the new government talk about discussing smaller amounts, of R$ 150 billion or less, and even considering the proposal of Senator Tasso Jereissati (PSDB), which does not remove Bolsa Família from the ceiling, but opens up space of R$ 80 billion on the ceiling.
Among different values and proposals, the concrete fact is that 3 weeks have passed without any advances in the PEC. The PT came to think that the negotiation would be easier, but the president of the Chamber of Deputies, Arthur Lira (Progressives), is practically re-elected to the position, reducing the need for support from the party.
Given this scenario, it is likely that the market will continue to reflect this lack of definition, going up or down as the value of the PEC increases or decreases.
However, another uncertainty may dissipate soon: the name of who will occupy the Ministry of Finance. Last Monday night (28), Fernando Haddad (PT) said that he will join the transition team in the Economy at Lula’s request, confirming his favoritism for the position.
The former mayor of São Paulo also said that he will talk to Gabriel Galípolo and Guilherme Melo, economists at the forefront of the new government’s economic discussions. As a nod to the concerns that dominate the markets since the discussion on the PEC began, Haddad also said that whoever pilots the Farm will have to take ownership of the fiscal issue.
In this Tuesday’s episode (29), CNN Money discusses the new text of the PEC and the prospects from now on, including whether this soap opera may have a close outcome or not.
Presented by Thais Heredia and Priscila Yazbek, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
