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Brazil Politics: Impasse Over Bill That Eases Fiscal Rule

The lower house and the senate reached an impasse over the so-called precatorio bill, which eases austerity laws and makes room in the budget for President Jair Bolsonaro’s new social program.

Brazil's Lower House Votes On Covid Aid With Fiscal Fix As Pandemic Soars.
By Fernando Travaglini
December 06, 2021 | 11:12 AM

Bloomberg — The lower house and the senate reached an impasse over the so-called precatorio bill, which eases austerity laws and makes room in the budget for President Jair Bolsonaro’s new social program.

The constitutional amendment was approved by both houses of congress in two rounds of voting, and the senate made changes to the text, forcing it to return to the lower house. But senators didn’t receive well a proposal made by house Speaker Arthur Lira, who would like to speed up the process by enacting only the consensual part of proposal -- leaving changes to be voted on a separate bill at a later date.

Another idea would be to take the full text of the bill, including changes introduced by the senate, directly to a vote on the floor of the lower house, skipping its committees. The issue will be debated on Monday during a meeting of senate leaders.

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Tighter Deficit

The economy ministry cut to 0.4% from from 0.99% of gross domestic product its estimate for next year’s primary budget deficit, considering the approval of the precatorio bill, according to newspapers.

Petrobras’s Prices

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Petroleo Brasileiro SA, the Brazilian state-owned oil giant, will announce a reduction in the price of fuel in the next few weeks, Poder360 reported, citing an interview with President Jair Bolsonaro.

The report provided no details. The president’s office didn’t respond to a request for comment.

2022 Election

Room for a so-called third-way presidential candidate running as an alternative to leftist Luiz Inacio Lula da Silva and President Jair Bolsonaro depends on the incumbent losing popularity and not making it to the runoff, Christopher Garman, director of the Eurasia Americas division, said in an interview with Valor Economico.

He forecast that Bolsonaro’s popularity will recover in the coming months with an increase in the minimum wage, cash handouts and an expected deceleration of inflation. Garman doesn’t expect such moves to make Bolsonaro the front-runner ahead of Lula, but sees former judge Sergio Moro coming third in the race. Chances of a runoff between Lula and Bolsonaro is 80% and the leftist leader is more likely to win then, the newspaper quoted Garman as saying.

Coronavirus

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Brazil reported 4,844 new cases of Covid-19 in the past 24 hours, according to data published by the Ministry of Health. The death toll reached 615,636, with 66 in the past 24 hours.

Newspapers’ Top Stories

O Estado de S. Paulo:

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  • Mayors fail to use 15 billion reais ($2.6 billion) of the budget for education

Folha de S.Paulo:

  • GSI allows mining in preserved areas of the Amazon

O Globo:

  • Use of revolving credit card lines hits record

Valor Economico:

  • Even with weak GDP, BC is likely to maintain a high interest rate policy
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