With a ‘weak’ government, liberals advocate that Guedes abandon reforms: ‘what is bad will get worse’

  • Camilla Veras Mota – @cavmota
  • From BBC News Brasil in São Paulo

Vote on the IF Reform in the Chamber on September 1, 2021

Credit, Cleia Viana/Chamber of Deputies

Photo caption,

Approval of the income tax reform ‘at the touch of the box’ in the House this week surprised experts

Worse than it is, it can stay.

This is the assessment of economists who saw the reform agenda proposed by the economic team as positive and who now see the risk of a setback given the weakness of Bolsonaro and the influence of the 2022 elections on government decisions.

At least two elements today make the environment in Brasília unfavorable to the approval of reforms, points out senior economist at MCM Consultores Mauro Schneider.

First, a weakened government — as in the case of Bolsonaro, with an approval rating of around 24% — is less likely to displease certain sectors and, therefore, is more susceptible to pressure.