Although the government achieved its initial goal of annulling the constitutional reform promoted by deputies for a new withdrawal of pension savings, the alternative bill was also rejected. Finance Minister Mario Marcel said that the result was compelling, and that the government would now return to focusing on its agenda.

After the voting in the Chamber of Deputies, where the two bills for the withdrawal of pension savings were rejected, the Ministers Giorgio Jackson (General Secretariat of the Presidency), Mario Marcel (Finance) and Jeannette Jara (Labor) held a press conference to report on the day’s events.

While the government’s strategy to curb the constitutional reform – the so-called “fifth withdrawal” resulting from the merger of seven Congressional motions – had achieved its main objective, by failing to muster the necessary 93 votes, it also suffered a defeat, because the alternative proposal, presented by the Executive to essentially align the Communist Party, also failed to muster the quorum of 78 endorsements in the Chamber.

The Deputies’ reform was rejected by 70 votes in favor, 70 against and 12 abstentions. The government’s initiative, in turn, which allowed a conditional withdrawal to pay delinquent debts, including alimony and mortgage loans, had even less support: only 68 votes in favor, 83 against and one abstention.

The result, however, was not entirely negative for the government. The right, and some factions of the ruling party, concluded that the rejection of both withdrawals strengthened the position of Minister Mario Marcel, who had tenaciously opposed the pension savings withdrawals since he was the Chairman of the Central Bank, not only because of their effect on inflation and interest rates, but also because of the damage to future pensions.

He added that the result was compelling, and that the government would now return to “focusing on its agenda,” radically changing the subject. In fact, Minister Jara announced that there will soon be a minimum wage proposal.

Despite the setback due to the rejection of the Executive’s alternative bill, there was another positive effect for Marcel’s team, since in theory the withdrawals of savings cannot be discussed again for another year.

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