Temer’s failure on Brazil pension reform leaves tricky task to successor
President Michel Temer’s decision to throw in the towel on reforming Brazil’s loss-making pension system leaves the unpopular measure as a campaign issue for October’s elections and a major headache for his successor.
Monday’s announcement that Temer was abandoning an overhaul of the social security system – billed as the centerpiece of his efforts at fiscal reform – sparked immediate concern from credit rating agencies that Latin America’s largest economy was failing to put its financial house in order.
Brazil’s generous pension system is at the heart of budget deficit that ballooned from 3 percent of GDP in 2013 to a massive 10 percent in 2015, before edging back to 8 percent last year as the $1.8 trillion economy emerged from recession.
Read More: Reuters
