What Happened: Brazil's lower house of Congress has approved a proposed pension reform bill by a final tally of 379 to 131 votes, Bloomberg reported July 10.
Why It Matters: Although the bill still faces a number of additional legislative hurdles before its implementation, its passage in the lower house of Congress by a substantial margin has increased its chance of success. However, the proposal has failed to gain support from Brazil's opposition, which may result in strikes or protests to oppose it. The bill is intended to lower the federal government's social security and pension spending, which could represent a significant step toward additional reforms to attract more foreign investment.
Background: The Brazilian government has sought to pass the pension reform for several years, with four previous administrations failing to approve the bill. The lower house of Congress will conduct a second vote on the proposal, followed by two additional votes in the Brazilian Senate.