Government will not pay server salary if Social Security does not pass, says Paulo Guedes


Economy Minister Paulo Guedes said that the payment of salaries of federal officials will be interrupted if pension reform is not approved in Congress. He says the federal government is breaking down, unlike private enterprise, and that discontinuing the payment of civil service wages will be "the first thing to happen." He also said it would be the "collapse" of states and counties.

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"200 million Brazilians need this [da reforma da PrevidĂȘncia], but there are six, seven, eight million that benefit from this factory of inequality [que Ă© a PrevidĂȘncia atual] and they want to prevent reform, "said the minister in an event promoted by the National Front of Mayors (FNP) on Monday. "Public servants should understand, and even most understand, that [a reforma] is a way to guarantee their pensions and wages, "he added.

He also stressed that mayors and governors will be "stoned" if the reform does not pass, because state and municipal governments will also not have more money to pay retirees and servants. "The welfare deficit is swallowing the public finances of governments."

Minister assigned wear with Maia to communication failure

It was the first time that the minister mentioned that the payment of the leaf could be interrupted if the reform does not pass in the Congress. Until then, he was concentrating on saying that the proposal was a way to save future generations from the current social security system and to solve the fiscal crisis.

The statements come after a troubled week in which the president of the Chamber of Deputies Rodrigo Maia (DEM-RJ) went on a collision course with the Executive.

About the controversy, the minister said that it is a communication problem, because it is a new government. "There is an obvious problem of communication. It's a government coming, "said Guedes. "The main political leaders will overcome any communication problems," he added.

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Guedes also said that Maia supports the pension reform and that it will not be different now. He also said he is confident in his relationship with Congress, believing that parliamentarians know the size of the challenge and are aware of the need to approve the reform.

"If someone is going to knock over some point [da reforma], I only ask that it not be below R $ 1 trillion, "he said when mentioning the expected economy with the pension reform over ten years. The project sent by the government foresees a fiscal gain of R $ 1.082 trillion.

"I believe we will have the reform approved. This is of interest to all mayors, governors, the Federal District. That matters to all of us. I believe that, "said the minister, who took the opportunity to ask everyone's commitment to the New Social Security. "There is an extraordinary agenda ahead because at any moment you can die because of the social security collapse."

Agenda to come after retirement

Regarding the agendas that could be implemented after the approval of the reform, the minister mentioned the Federative Pact, a proposal to unlink and disindex the Federal Budget, and the tax reform, which will unite eight or nine federal taxes in a single tax.

He also mentioned that a government objective is to end Petrobras' gas monopoly and that it will be possible to reduce costs. The minister also said that the agreement for the onerous assignment with Petrobras has already been closed and will be announced in the coming days, making possible the auction of the pre-salt later this year.


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