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Pension reform will avoid "radical" measures, says minister

Reform of Social Security

During seminar, holder of the Ministry of Planning, Budget and Management said that the proposal of the federal government is "gradual." Without change, budget will be "unfeasible"

Aimed by the government as essential for sustainability of public accounts, pension reform will prevent "radical" solutions from being taken in the future to contain the system's deficit. With the change of the rules of retirement, the Minister of Planning, Budget and Management, Dyogo Oliveira, said on Tuesday (25) that Brazil will not need to adopt measures as benefits reduction.

"In the case of other countries, they reduced benefits, froze wages ... They had to make a radical reform. We have the opportunity not to go through this," said the minister, citing the pension problems faced by countries such as Spain and Portugal.

During a presentation at the seminar "Courier debate: Pension reform",  Oliveira stressed that the federal government's proposal is "gradual" and will prevent the country from changing social security rules in a situation of greater lack of control of public accounts.

"I have no doubt that Brazil is having an unparalleled opportunity to do a pension reform where Brazil is deciding," said the minister. In his view, the increasing increase in social security expenditures will make the federal budget "unviable," since most of the funds will be used to pay for pensions.

Currently under discussion in the Chamber of Deputies, the text of the pension reform provides for the adoption of a minimum age of 65 for men and 62 for women to access the benefit. In 2016, the Social Security deficit, in the general regime, reached R $ 149.7 billion. For this year, the figure could reach R $ 202.2 billion if the proposal is not approved.

More growth

For the minister, the economic indicators already show reaction of the Brazilian economy after a long economic recession. However, he warned, the sustainability and growth of the economy will only come before the consolidation of economic reforms.

"That depends crucially on getting the reforms approved. The first one is the Social Security, "said the minister, citing, also, the labor and tax reforms, also in analysis of the National Congress.