Finance Minister Henrique Meirelles said on Wednesday that he is focused on Brazil’s economic recovery and not thinking at this time of running for president in the October election, though he might consider a bid in April.
In an interview with Radio Bandeirantes, Meirelles said pension reform was not “dead and buried” but would not be taken up in Congress during the federal intervention in Rio de Janeiro state which has been authorized through 2018.
Meirelles also said taxes will have to be raised in the future if the costly social security system is not overhauled.
Meanwhile Moody’s Investors Service said the Brazilian government’s decision to drop its efforts to seek approval of the pension reform proposal in Congress was credit negative.
“While we already expected that a major pension reform was unlikely, ditching off the plans to pursue its approval is a credit negative development that will severely restrict the authorities’ ability to comply with the government spending ceiling in the coming years,” the credit rating agency said on Tuesday in a note to clients.