Brazil Congress OKs 2 Key Reform Bills

Brazil’s president scored a crucial victory when lawmakers approved belt-tightening measures intended to rein in spending and show the government is serious about economic reform. Congress approved measures that capped civil servants’ pensions at $1,000 monthly and set minimum retirement ages of 53 for men and 48 for women. Brazil previously had no minimum retirement age. The government agreed to drop a third measure that would have limited special pensions for people in hazardous occupations. The measures are expected to save $2.5 billion, barely a dent in Brazil’s huge deficit. But they are seen as proof that the independent-minded Congress is serious about cutting the massive deficit--7% of the country’s gross domestic product. The government is pushing a mix of new taxes and spending cuts in a bid to save $24 billion in 1999 and $80 billion by 2002. The measures must be approved by Congress. Brazil is also hoping to win a $30-billion rescue package from the International Monetary Fund.