A Kick-Start

As anticipated the constitutional amendment limiting Brazilian member state expenditure for the next 20 years was passed by the Chamber of Deputies last night. The 366 to 111 margin of approval is a significant victory for the Michel Temer cabinet. It further enhances confidence in the government’s ability to implement needed legislation for fiscal adjustment.

Economic recovery and the country’s credibility in the eyes of investors are the major beneficiaries of such important development. Next in line should be the delicate yet equally crucial issue of social security reform. One thing is for sure: in Brazil the ball is finally rolling again.

(photo credit: diariodonordeste.verdesmares.com.br)