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Zema meets with Bolsonaro and tries to accelerate MG’s adhesion to the Tax Recovery Regime

July 7, 2022
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Zema meets with Bolsonaro and tries to accelerate MG's adhesion to the Tax Recovery Regime
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With the doors closed, Romeu Zema (Novo) met with Jair Bolsonaro (PL) on Monday afternoon (4), in Brasília. At the meeting, the governor of Minas Gerais guided and asked for the president’s support for the realization of one of his main projects: the adhesion of the state to the Fiscal Recovery Regime (RRF).

To Brasil de Fato MGthe state government informed that Zema announced at the meeting that he “will take all necessary steps to settle the necessary procedures with the Ministry of Economy, with a view to consolidating the adhesion to the RRF with the Federal Government”.

Created by the Temer government (MDB) and updated by the Bolsonaro government, the measure allows the suspension of the states’ debt with the Union, for nine years.

However, in addition to the debt being collected later with corrections and interest, adherence to the RRF imposes a series of requirements on states, such as the suspension of public tenders, prohibition of salary readjustments to civil servants, privatization of state-owned companies, among others.

:: Read more news from Brasil de Fato MG. Click here ::

In the opinion of economist José Prata Araújo, adhering to the Tax Recovery Regime, in addition to not solving Minas Gerais’ indebtedness, can worsen the situation.

“It is very focused only on cutting expenses. It does not point to economic growth or effective debt renegotiation. The RRF requires a series of sacrifices, for nothing. In Rio de Janeiro, upon joining, the debt was 240% of revenue and, three years later, it went to 310%,” he says.

Run over the Legislature

The Bill (PL) 1202, which provides for the accession of Minas Gerais to the RRF, has been processed at ALMG since 2019. Even without the approval of the Legislative Assembly of Minas Gerais (ALMG), the Federal Supreme Court (STF) authorized last Friday this Friday (1st) the government of Minas Gerais to join the RRF.

In October 2021, the government of Minas sent an urgent request to the House for consideration of the proposal. However, amid protests from popular movements and strong opposition from parliamentarians, the government withdrew the request in March this year.

In May, Zema again asked the deputies to analyze the project with a reduced deadline.

Now, a decision by Minister Nunes Marques, appointed by Bolsonaro to the STF, delegates to the Ministry of Economy to approve or not the MG’s request to join the RRF.

José Prata believes that Zema’s action to appeal to the STF and the federal government is part of a government strategy to “run over” ALMG. In the House, the governor faces more difficulties in achieving his goals, since a considerable part of the parliamentarians is against the adhesion of Minas Gerais to the RRF, due to the requirements of the measure.

“If you read Zema’s program, you will realize that he and his party have nothing different to propose. Their only obsession is to privatize everything. It has no government proposal,” he emphasizes.

Bolsonaro’s friend

Behind the scenes, it is also believed that another reason for the meeting is a desire for a pact between Bolsonaro and Zema for this year’s electoral dispute.

There are obstacles to a declared alliance. In the run for the Planalto Palace, Zema’s Novo party is not in Bolsonaro’s campaign, and launched Luiz Felipe d’Ávila’s pre-candidacy. In Minas Gerais, Bolsonaro’s party leads the pre-candidacy of Carlos Viana (PL).

Although Bolsonaro and Zema’s subtitles present their own pre-candidates for the federal and state majority disputes, experts bet that the link between the two should increase even more.

This is because, for Zema, it is important to have Bolsonaro’s support in a possible second round against Alexandre Kalil (PSD), a pre-candidate for the government supported by Lula. As for the current president, building up the support of Zema is fundamental to guaranteeing a competitive platform in Minas Gerais, the second largest electoral college in Brazil.

Analysts also point out that the ideological proximity and economic project between Zema and Bolsonaro is another factor that narrows the relationship between the two.

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“Zema and the Novo party are extremely ideological, so he feels uncomfortable if he doesn’t have the extreme right and privatist electorate on his side. So, their tendency is to stick to the Bolsonaro and Paulo Guedes project”, concludes José Prata.

Public servants organize

While Zema articulates with the federal government to try to accelerate the state’s adhesion to the RRF, civil service workers organize themselves to face the measure.

Also on Monday (4), at the headquarters of the Central Única dos Trabalhadores (CUT), in Belo Horizonte, leaders of 11 unions met to discuss strategies to confront Zema’s onslaughts and the decision of the STF.

Participating in the meeting were entities representing education workers, tax auditors, justice officials, tax officials and tax officials.

The union leaders will meet again next Monday (11).

Source: BdF Minas Gerais

Editing: Elis Almeida

Tags: accelerateadhesionalignmentbolsonaroelectionslowmeetsMGspolicyrecoveryregimetaxtax recoveryZema

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