What Happened: A committee of the lower house of the Brazilian congress will begin discussions June 18 about a measure to reform the country's social security system, O Globo reported. The president of the chamber of deputies, Rodrigo Maia, intends to bring the reform to a committee vote June 25.
Why It Matters: The developments suggest Brazilian social security reform will progress during the third quarter. Though Brazil's congress will go on recess from July 17 to Aug. 1, there will likely be enough time to organize a lower house vote on the reform.
Context: Brazil's aging population and relatively lax requirements for accessing pension funds have spurred calls to reduce social security spending to make funding the system sustainable in the long run. Brazil currently spends around 40 percent of its federal budget on social security.
- 2019 Third-Quarter Forecast (June 17, 2019)
- 2018: The Year Bolsonaro Captured Brazil's Presidency (Dec. 26, 2018)