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Brazil Senate's Pension Reform Vote Facing Late Hurdles

Reuters

   BRASILIA - A second-round vote on pension reform scheduled for next
   week in Brazil's Senate may not take place if the government reneges on
   promises made to lawmakers in return for their support, the
   government's leader in the upper house said on Tuesday.

   Major Olimpio told reporters that the majority view among senators at a
   meeting in Brasilia on Tuesday is that the government must meet their
   demands if its main economic reform legislation of the year is to be
   enacted on schedule.

   "It's not a threat, it's a warning. Most senators said 'we are going to
   vote for Brazil today, but if there are no commitments made by the
   government, there will be no vote on the 10th,'" Olimpio said.

   The concerns revolve around new proposals that will govern federal and
   state government finances, known as the "federative pact," including
   whether regional demands will be met.

   The landmark overhaul of Brazil's costly social security system aims to
   save the government almost 1 trillion reais ($240 billion) over the
   next decade via a mix of unpopular measures like raising the minimum
   retirement age and increasing workers' pension contributions.

   It is being closely watched by investors worried about Brazil's budget
   deficit and national debt. The government, central bank and many
   economists insist it is needed to boost confidence, investment and
   ultimately economic growth.

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