Investors Cheer Brazil Pension Bill and Brace for Long Drama
- Bolsonaro’s reform proposal starts moving through Congress
- Investors get ready for months of volatility as bill debated
Passengers crowd on to a train at the Luz subway station in Sao Paulo, Brazil.
Photographer: Patricia Monteiro/Bloomberg
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Investors applauded a plan to overhaul Brazil’s pension system while bracing for congressional drama that’s likely to rival the longest and most intricate Netflix series.
Amid plenty of fanfare, President Jair Bolsonaro personally delivered the proposal to Congress on Wednesday, after a difficult few days for his government. The plan holds out big rewards, including estimated savings of up to 1.2 trillion reais ($320 billion) in 10 years, but its potentially tortuous progress will keep investors on edge for months.