Explained: Why Brazil’s pension reform bill to help save $312 billion matters | Explained News, The Indian Express

Explained: Why Brazil’s pension reform bill to help save $312 billion matters | Explained News, The Indian Express

By Reuters |Brasilia |Published: April 26, 2019 10:58:30 am

Explained: Why Brazil’s pension reform bill to help save $312 billion matters

What exactly is the Brazil government proposing? Why does it matter? And why are markets so sensitive to its every twist and turn?

Brazilian Federal Deputy Marcelo Ramos speaks during a session of the commission of the pension reform bill at the National Congress in Brasilia, Brazil 25 April, 2019. (Reuters Photo: Adriano Machado)

Brazilian President Jair Bolsonaro is staking much of his political capital on a plan to shore up the country’s costly social security system, which he hopes will kick-start the country’s economy and boost investor sentiment. The government is, however, struggling to sell its proposal to the public and lawmakers. Legislation will almost certainly be watered down, and passage through both houses of Congress could be a long, drawn-out process.