Without Pension Reform, Guedes Says he will Resign and Live Abroad

By Richard Mann

RIO DE JANEIRO, BRAZIL – The Minister of Economy, Paulo Guedes, affirmed that he would resign his post if the reforms of the Social Security system wanted by the administration turn into a “mini-reform”.

Brazil will collapse in 2020, according to an interview with him published on the site of Veja magazine on Friday, May 24.

“I will take a plane and go live abroad. I am already old enough to retire,” he said, according to the report.

“If we don’t do the reforms, Brazil will go down in flames. There will be chaos in the public sector, both in the federal government as well as in the states and municipalities.”

According to Veja, Guedes affirmed that President Bolsonaro is committed to approving the reforms precisely as the project was sent by the administration to the Congress, with expectations of saving at least R$1.2 trillion (US$292 billion) in the next ten years.

Guedes acknowledges that there is room for negotiation, which could reduce the savings to R$800 (US$195) billion.

Still, according to the magazine, he said that the Social Security reforms are not being presented just to balance the budget, but are also designed to correct enormous inequalities.

The minister reaffirmed his confidence in Bolsonaro’s convictions and believes in a political solution in alignment with the economic agenda of the administration. “I trust the president’s confidence in me.”