Huge Boost for Brazil Pension Reform as Bill Clears Major Hurdle
- Lower house of Congress votes 379 to 131 to approve base text
- Brazil’s generous pension system straining public finances
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Amid the gloom surrounding Brazil’s economy -- shrinking growth forecasts, double-digit unemployment and rising public debt -- Wednesday’s lower house vote to reform the pension system marks a significant step forward.
In a 379 to 131 vote, lawmakers approved the base text of a reform that will result in significant savings for the government and finally establish a minimum retirement age for Brazilians. While the bill still faces a number of legislative hurdles before becoming law, including amendments that could sap its strength, the draft legislation has now overcome its most challenging obstacle.