Government accepts cutting R$ 200 billion in savings from reform, says Bolsonaro.
President Jair Bolsonaro stated that the savings from the pension reform must be at least R$ 800 billion over 10 years, a level, according to him, stipulated by the Minister of Economy, Paulo Guedes; however, this Thursday, the Ministry of Economy stated that it expects total savings of R$ 1,237 trillion over ten years, compared to the R$ 1,072 trillion previously announced; Guedes has repeatedly stated that if the savings are not at least R$ 1 trillion, it will not be possible to implement the capitalization system as desired.
Reuters - President Jair Bolsonaro stated this Thursday, during a breakfast with journalists, that the savings from the pension reform must be at least 800 billion reais over 10 years, a level, according to him, stipulated by the Minister of Economy, Paulo Guedes.
This Thursday morning, the Ministry of Economy released a new figure and stated that the proposed amendment to the Constitution (PEC) on Social Security foresees total savings of 1,237 trillion reais over ten years, compared to the 1,072 trillion reais announced when the proposal was presented in February. Guedes has repeatedly stated that if the savings are not at least 1 trillion reais, they will not be robust enough to launch the capitalization system.
In a meeting with journalists from various media outlets, such as the newspaper O Estado de S. Paulo and the news channel GloboNews, Bolsonaro commented that if the savings from the reform fall below 800 billion reais in 10 years, "the situation will explode in 2022."