The Brazilian Congress overturned the pension reform and super director Guedes threatened to leave

The House, where the ruling party has a large majority, challenged the government Tuesday by approving a draft constitutional amendment (which has yet to ratify the Senate), which requires the executive to respect the entire budget, thus reducing its maneuverability with expenses, which must also increase considerably.

As well, the Chamber of Deputies has for the most part blocked the pension reform project reducing the right of rural workers, while the rejection of new rules of adjustment for retired army and police widens in the ranks of Bolonians.

Guedes, a former investment fund holder, was questioned by a Senate committee on his pension reform bill, which had been rejected by 13 parties in the House.

This dramatically hits the index Ibovespa, which at the beginning of last week had crossed for the first time the 100,000 mark and closed on Wednesday at 91,903 points, down 3.57% from the previous day. This is the lowest level of the Ibovespa since January 7, when the index began a series of optimistic records before coming to power a week before. Bolsonaro and his minister Guedes. Ibovespa gained more than 13% in 2019, but in March it dropped 3.57%, reducing its January profits to 4.5%.

The pension reform plan, affected by this change brought by the Congress, is the main economic objective of the government of Jair Bolsonaro. "If the president supports what I think is good for Brazil, I will be in government, now, if the president or the House does not wish, I will not hinder your work and I will come back to what I'm going to do. Have always been, I have a life on the outside "says Guedes.

The minister said that "the beginning of the reforms against the deficit" is the plan of the new pension system, which increases the retirement age and requires the citizen to contribute 40 consecutive years to benefit from a pension complete, ten more than now.

"I come here to help, if the president does not want to, if Congress does not want to, I will not fight to stay, because I'm here to serve, I'm not attached to the post, I do not want stay at all costs, nor am I irresponsible to go before the first defeat, it does not exist "said Guedes, considered a super minister of Bolsonaro.

Even Eduardo Bolsonaro, the president's son, voted in favor of increased Congressional control over the budget, in addition to almost the entire ruling Liberal Social Party bloc.

"Currently, the system is a plane about to break down, you would not bring it to your children and your grandchildren.If this aircraft continues to retire, it will be about A trap because there will be no collection ".says Guedes.

In this sense, he defended the system of voluntary capitalization of young people entering the labor market, namely the introduction of a system similar to that set up in Argentina with the AFJP, but only for new generations.

"We want to democratize the habit of saving, young people who want to have their retirement account, this has to be done in financially fragile families because families with resources already educate their children with options. investment, "he explained.