Protest, reforms and changes in Brasilia

Last week was one with huge changes in Brasilia, either because of the protests last Wednesday, when the demonstration against the Labor and Welfare Reforms went . . .

Last week was one with huge changes in Brasilia, either because of the protests last Wednesday, when the demonstration against the Labor and Welfare Reforms went out of control and the Esplanada dos Ministérios (where the Brazilian ministries are localized) became a battlefield; or because of the heated discussions in Congress between parliamentarians who deliberated the Labor Reform on the Committee on Economic Affairs of the Senate and Provisional Measures in the Plenary of the Chamber of Deputies.

Adding more emotion to Brazilian politic scenario, on Friday, the president of the National Bank for Economic and Social Development (BNDES), Maria Silvia Bastos Marques, resigned from office; and on Sunday evening, President Michel Temer announced an exchange of Minister of Justice and Public Security and Minister of Transparency.

The departure of Osmar Serraglio from the Ministry of Justice to the Ministry of Transparency, at the request of the PMDB, is seen as favorable to the Temer administration, since, during his term, he was not firm in his actions and declarations concerning Operation “Weak Meat” (“Carne Fraca”, in Portuguese), where he was mentioned among those involved. Beside being a weak name to be the head of a strong Ministry, that has to lead the Federal Police, among other competencies. If Serraglio returned to the Chamber of Deputies, as a Federal Deputy, his substitute, Rodrigo Rocha Loures – investigated by the Federal Supreme Court (STF) for receiving a bribe from Joesley Batista, owner of the J & F group – would lose the privileged forum.

Torquato Jardim, a former minister of the Supreme Electoral Tribunal (TSE), is now the Minister of Justice. This is perceived with caution, since Torquato already raised doubts about the Car Wash operations. This was an strategic move, because we are on the verge of the trial of the Dilma-Temer combo of the 2014 elections in the TSE, where the current MInister is well-liked and has held a position for several years.

Regarding the resignation of the President of the BNDES, who alleged personal reasons for her resignation, Temer was quick and appointed Paulo Rabello Castro, also na economist and current president of the Brazilian Institute of Geography and Statistics (IBGE), to the office. For the time being, there is no name for the vacant IBGE post; but this should take place this week.

The financial market was already closed, or about to close, when the former president resigned, not suffering great mishaps. However, politically, this is a shock to the Temer administration, which needs all the support it can get, and coalition to continue in office and tp show strength to society and to the market.

Meanwhile, in the National Congress, the mood is not calm, for, even with some manifestations favorable to the pause of the deliberations of the government reforms, the government base worked to ensure that votes were not hampered by the JBS allegation involving President Michel Temer.

The Federal Senate Committee on Economic Affairs (CAE) meeting last Tuesday was trying to read Senator Ricardo Ferraço’s (PSDB/ES) report on the Labor Reform, but a great confusion among senators (Government versus opposition) made it impossible for the committee to proceed.

Is spite of that, the report was considered read and a collective time for the parlamentarians to take a closer look at it was given. This upset the opposition, which manifested its disagreement in the House Plenary. For this week, the Labor Reform (PLC 38/2017) is scheduled for voting in the CAE of this Tuesday, at 10am.

In the Senate Plenary, six Provisional Measures are included for deliberation, among them the one concerning price differentiation of goods and services offered to the public according to the term or the payment instrument used (MP 764/2016). In addition to that, following the agenda, there is the vote, in the second round, of PEC 10/2015, which extinguishes the special forum by prerogative of function for federal authorities.

One actor who stood out last week in discussions on Labor Reform and the crisis of the government was Senator Renan Calheiros (PMDB/AL), the party leader in the Senate, who has repeatedly opposed to the government and to President Temer, even belongin to the same party. This was not well received by their fellow senators, who put his leadership in check and who will meet this Tuesday (30), to decide on the permanence of Calheiros in the leadership.

The current moment remains delicate for the government to vote for these Reforms, especially the one on Pension, in the Plenary of the House. These reforms need a qualified quorum for approval (3/5 of deputies = 308). However, the President of the House Rodrigo Maia (DEM/RJ) affirms that, next week, he should put the Reform forward for deliberation. However, the uncertainties and exposure of the government are not favorable to put to a vote a project that not only does not have full agreement between the parties, but now has to face the possible break-up between them.

Highlighted in the House Plenary this week for the deliberation of the bill that deals with the validation of tax benefits granted without authorization from the National Council of Finance Policy (Confaz) (PLP 54/2015); And three other Provisional Measures, among them MP 766/2017 that establishes the Tax Regularization Program with the Federal Revenue Service of Brazil and the Attorney General of the National Treasury.

In the Senate committees, we highlight Wednesday’s public hearing of the Agriculture Committee with Agriculture Minister Blairo Maggi, to discuss Senate’s Bill Project n.4 of 2017, which deals with the National Policy on Farming Risk Management.

Another meeting that had major discussions between governors and opposition in the last week, and which should continue later this week, was the Committee on Constitution and Justice and Citizenship (CCJC) of the House, that tried to vote the Proposal for Amendment to the Constitution (PEC 227/2016) that allows for direct elections to the Presidency of the Republic, in case of vacancy of the holder. This meeting was mailny driven by the possibility of an indirect election by the National Congress, with the possible departure of Michel Temer.

The meetings of the permanent committees last week were hampered by the demonstration that took place in the Esplanada dos Ministérios, however they should occur normally this week.

The public hearing of the Special Commission on the Treatment and Protection of Personal Data on “Regulatory Model: body, agency and self-regulation”, will have the participation of a representative of the Faculty of Law of the University of São Paulo; InternetLab; Federal Data Processing Service (SERPRO); and the Secretariat for Informatics Policy (SEPIN / MCTIC).

In addition, there will be a hearing to discuss PL 5065/16, which classifies acts of terrorism for ideological, political, social and criminal motivation, in the Commission for Public Security and Combating Organized Crime (CSPCCO), which has the Minister of Defense, Raul Jungmann; the director of Abin’s Counterterrorism Department, Saulo Moura da Cunha; and federal prosecutor for Human Rights, Deborah Duprat as guests.

Another interesting meeting will be the discussion and voting of the partial report on Electoral Rules, Electoral System and Campaign Financing Model of the Rapporteur, Vicente Cândido (PT/SP) in the Special Committee on Political Reform, which has sliced ??its reports for a better debate.

This Tuesday (30), the National Congress is scheduled to analyze presidential vetoes (17 in total) and a Draft Resolution that establishes a Permanent Joint Commission aimed at consolidating federal legislation and regulating provisions of the Federal Constitution.

In the judiciary, Minister Celso de Mello, of the STF, must decide on Monday on the request for annulment of the terms of the plea bargain signed by the executives of JBS, made by the Brazilian Institute of the Right of Defense (Ibradd). The allegation is that the conditions agreed between informers and the Justice violate the Constitution.

Also this week, the STF must judge an action on restriction of the privileged forum for deputies and senators; in addition to the constitutionality of the increase in the calculus and the increase of the rate of the Social Contribution Tax rate (COFINS) rate from 3% to 7.6% established by Law 10,833/2003.

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Category: GOVERNMENT RELATIONS, Heloisa Rodrigues Itacaramby Bessa

Tags: correia dasilva advogados, csa, government relations

Posted in: 26/06/2019

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