November 12th, 2021


1. Former judge Sergio Moro joins Podemos party to run as presidential candidate

This week, former judge and former Justice and Public Security Minister Sergio Moro joined the Podemos party as a third candidate in the polarized presidential race between Bolsonaro and Lula in 2022.

The ceremony in which Moro became a party member took place in Brasilia with the executive board of the party, members of Congress, public servants, and executives. During the event, Moro gave an hour-long speech.

He defended Operation Car Wash and the fight against corruption, criticized both the PT and Bolsonaro administration, and said he was willing to become a candidate.

Moro became an important political figure after he sentenced former president Lula to jail in 2019. In April 2020, after one year and four months as the Minister of Justice, he quit the administration after accusing Bolsonaro of interfering with the Federal Police.

Valor Econômico: Sergio Moro se filia ao Podemos e diz ‘chega de mensalão e rachadinha’
G1: Em ato em Brasília, ex-juiz Sergio Moro se filia ao Podemos
Folha de S. Paulo: Moro se filia ao Podemos, ataca Bolsonaro e PT e defende Lava Jato em discurso de candidato

2. Federal government reassesses and eases labor standards

A new decree by the executive branch reassessed and simplified labor standards in the country. According to official estimates, the new rules compress approximately 1,000 norms into 15. They cover issues such as worker documents, benefits, work hours, professional learning, professional registration, and union membership and monitoring.

According to the Labor and Social Security Ministry, the plan is for the standards to be reassessed every two years. Updates will be adopted according to technological developments and workers’ and companies’ changing needs.

Some of the most significant changes concern meal vouchers for employees, who can now choose more flexible ways to use that benefit. The administration is considering granting companies 18 months to implement and adapt to the new rules.

G1: Governo revisa e consolida portarias, instruções normativas e decretos com regras trabalhistas
Exame: Governo reduz mil normas trabalhistas a 15 e flexibiliza vale-alimentação
Folha de S. Paulo: Governo flexibiliza regras trabalhistas e revê mais de mil normas

3. Federal Supreme Court suspends rapporteur amendments in the Federal budget

This week, the Federal Supreme Court approved an injunction, proposed by Justice Rosa Weber, prohibiting the Federal Government from creating rapporteur amendments—also known as “secret budgets”—for the federal budget. The amendments, which amount to R$ 1 billion, are used by members of Congress to procure funds from the federal budget without disclosing their ultimate destinations.

The prohibition directly affects Federal Government plans to ensure its agenda is approved by Congress, including the Precatory Constitutional Amendment Bill. The bill would fund the new “Auxílio Brasil” social benefit, which Bolsonaro planned to use to boost his chances in the 2022 presidential race.

Vice-President Hamilton Mourão complemented the Federal Supreme Court’s decision, saying it was important to ensure transparency when it comes to public funds.

Folha de S. Paulo: Rosa Weber suspende emenda parlamentar estratégica para Bolsonaro
G1: Mourão diz que ‘intervenção’ do STF no orçamento secreto foi ‘oportuna’ .
Piauí: Governo ignora STF e executa orçamento secreto

4. Bolsonaro says he will extend salary tax exemptions

On Thursday (11/11), President Jair Bolsonaro announced that salary tax exemptions will be extended for companies operating in 17 different economic sectors. The exemption was first implemented during the PT administration and was supposed to end in 2021. By extending the exemption, the Bolsonaro administration plans to grow the economy and create more jobs.

The sectors benefiting from the extension include road transportation, machinery, communication, textiles, and civil construction.

The tax exemption means the tax on salaries (20% for pension contributions) will be replaced by an aliquot on company gross profits that will vary from 1% to 4.5%.

This measure ensures the government will fail to collect nearly R$ 8 billion per year, which, according to financial experts, greatly affects federal funds.

Estadão: Bolsonaro anuncia prorrogação da desoneração da folha de pagamentos por mais 2 anos
Infomoney: Bolsonaro anuncia prorrogação da desoneração da folha de pagamento por 2 anos
CNN: Bolsonaro diz que vai prorrogar desoneração da folha por mais dois anos

5. Partido Liberal announces that Bolsonaro joined the party

On Wednesday (11/10), Partido Liberal announced that Jair Bolsonaro will join the party and make his membership official on November 22nd.

The President, who regularly criticizes current party structures, hasn’t belonged to a party since 2019 when he left Partido Social Liberal—the party that got him elected in 2018.

The president of Partido Liberal is the former federal representative of the state of São Paulo, Valdemar Costa Neto. Following accusations of corruption and money laundering, Valdemar was sentenced to seven years and 10 months in prison in the 2012 Mensalão trial.
G1: PL diz que Bolsonaro assinará ficha de filiação no próximo dia 22
CNN Brasil:  PL arma mega-ato para filiação de Bolsonaro; SP enviará 10 ônibus
Valor Econômico:  PL confirma filiação de Jair Bolsonaro para o dia 22