The government is working toward creating a social brand and other weekly topics
Congress may resume discussion of Tax Reform. On Thursday, July 16, congressmen may analyze presidential vetoes. President Jair Bolsonaro sanctions the new regulatory framework for the sanitation sector. The president may also sign a decree regulating the law that deals with suspension of labor contracts and salary reductions.
This week's Talking Points:
* Developments in the crisis. The political environment is calm, although some tension has arisen in recent days.
* Vetoes indicate an unstable relationship with the Centrão. - When the political crisis escalated at the beginning of the COVID-19 pandemic, President Jair Bolsonaro realized the importance of approaching the Centrão to reduce the risk to his mandate as impeachment requests were mounting in the Lower House. However, as we analyze the laws that have passed since the decree of the state of emergency in March, we find that the alignment between the Executive and the Legislative is far from ideal.
* Vetoes may cost more than R$ 120 billion. The President of the National Congress, Senator Davi Alcolumbre (DEM-AP), may call for a joint session this week to deliberate on President Bolsonaro’s vetoes. Congress has not analyzed any vetoes since the legislature began working remotely. The pressure on Alcolumbre to schedule a session for this purpose peaked after President Jair Bolsonaro's veto on extending the payroll exemption for 17 economic sectors last week.
* The government is working toward creating a social brand. Emergency aid has changed the Jair Bolsonaro government’s support base. In a recent poll by DataPoder360, published on Thursday, July 9, the government’s positive ratings (“excellent/good”) reached 34% among those who are unemployed or have no fixed income – 5% above the national average for the President’s approval. The negative ratings, in turn, reached 36% in the same group, 10% below the national average.
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