Will the Administrative Reform be approved by the end of 2021?
Market Rules
In the second half of 2021, Brazil's Congress began discussing the terms for a so-called Administrative Reform, aimed at changing the rules of public service. The proposal for a Constitutional Amendment (PEC 032/20) around the topic was being debated in a special commission in the House of Representatives, before coming to a vote and moving to the Senate.
The reform is a promise of President Jair Bolsonaro's campaign, and a priority of his economic team, which sees the cost of public employees as one of the causes of the imbalance in public accounts.
If the Administrative Reform constitutional amendment (PEC 032/20) is approved by Brazil's Congress (both in the Chamber and in the Senate, in two votes in each house) by the end of 2021, this market will be resolved as "Yes".