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| Brazil senate approves austerity package to freeze social spending for 20 years Brazil senate approves austerity package to freeze social spending for 20 years | |
| (about 2 hours later) | |
| Brazilian senators have approved a 20-year social spending freeze described by a senior UN official as the most socially regressive austerity package in the world. | Brazilian senators have approved a 20-year social spending freeze described by a senior UN official as the most socially regressive austerity package in the world. |
| The senate approved the cap on Tuesday by a 53-16 margin, though leftist opponents of the austerity measure sought to delay the vote as long as possible. | The senate approved the cap on Tuesday by a 53-16 margin, though leftist opponents of the austerity measure sought to delay the vote as long as possible. |
| Senators must still vote on some details of the bill, such as requests to exempt education and health spending from the cap, which are expected to be rejected by lawmakers. | Senators must still vote on some details of the bill, such as requests to exempt education and health spending from the cap, which are expected to be rejected by lawmakers. |
| President Michel Temer – who came to power after engineering the impeachment of his former running mate, Dilma Rousseff – has argued that the spending cap is essential to improve Brazil’s credit rating and ensure economic recovery. | President Michel Temer – who came to power after engineering the impeachment of his former running mate, Dilma Rousseff – has argued that the spending cap is essential to improve Brazil’s credit rating and ensure economic recovery. |
| But last week, the UN special rapporteur on extreme poverty and human rights, Philip Alston, described the plan as an attack on the poor – and a violation of Brazil’s obligations under the International Covenant on Economic, Social and Cultural Rights. | But last week, the UN special rapporteur on extreme poverty and human rights, Philip Alston, described the plan as an attack on the poor – and a violation of Brazil’s obligations under the International Covenant on Economic, Social and Cultural Rights. |
| “This is a radical measure, lacking in all nuance and compassion,” he said in a statement on Friday. “It is completely inappropriate to freeze only social expenditure and to tie the hands of all future governments for another two decades. If this amendment is adopted it will place Brazil in a socially retrogressive category all of its own.” | “This is a radical measure, lacking in all nuance and compassion,” he said in a statement on Friday. “It is completely inappropriate to freeze only social expenditure and to tie the hands of all future governments for another two decades. If this amendment is adopted it will place Brazil in a socially retrogressive category all of its own.” |
| Authorities braced for protests outside Brazil’s congress organized by labor unions and leftwing groups opposed to cutbacks. They say they will undermine education and health services and will hurt Brazil’s poor. | Authorities braced for protests outside Brazil’s congress organized by labor unions and leftwing groups opposed to cutbacks. They say they will undermine education and health services and will hurt Brazil’s poor. |
| Police frisked young men and women as they arrived at Brasilia’s ministry-lined esplanade and seized pen knives, slings and marbles used by protesters to unbalance police horses. | Police frisked young men and women as they arrived at Brasilia’s ministry-lined esplanade and seized pen knives, slings and marbles used by protesters to unbalance police horses. |
| The unpopular constitutional amendment limits the growth of federal government spending to the rate of inflation for 20 years, with a presidential review after a decade. It cleared the senate in a 61-14 vote in the first of two votes on 29 November. | The unpopular constitutional amendment limits the growth of federal government spending to the rate of inflation for 20 years, with a presidential review after a decade. It cleared the senate in a 61-14 vote in the first of two votes on 29 November. |
| A Datafolha poll on Tuesday showed that 60% of Brazilians oppose the cap. The survey, published by the Folha de S Paulo newspaper, said opposition was strongest among young people, those with higher education and lower-income Brazilians, while the rich tend to support it. | A Datafolha poll on Tuesday showed that 60% of Brazilians oppose the cap. The survey, published by the Folha de S Paulo newspaper, said opposition was strongest among young people, those with higher education and lower-income Brazilians, while the rich tend to support it. |
| Temer’s government has also sent congress a proposal to reform Brazil’s costly pension system, without which economists say the spending cap will not by itself restore fiscal balance. | Temer’s government has also sent congress a proposal to reform Brazil’s costly pension system, without which economists say the spending cap will not by itself restore fiscal balance. |
| Pension reform is expected to face fierce opposition next year as unemployment rises and the country’s worst slump since the 1930s Great Depression threatens to stretch into a third year. | Pension reform is expected to face fierce opposition next year as unemployment rises and the country’s worst slump since the 1930s Great Depression threatens to stretch into a third year. |