Brasília, July 18, 2003 (Agência Brasil - ABr) - The PMDB is pleased with the results of negotiations over the Social Security amendment bill, leading to the formulation of the report presented today by Deputy José Pimentel (PT-CE). This position was expressed today by the leader of the party, Deputy Eunício Oliveira (CE). He said that the report does not break the spinal column of the proposal submitted to the Congress by the Administration. He recalled that dialogue with the government is possible and, when conducted through the proper means - leaders and parties - the Administration is always successful in its negotiations.

The leader also said that he regards as natural the changes in the original proposal, emphasizing that they correspond to positions that the PMDB always defended: full retirement benefit payments, parity for the current cadre of civil servants, and preservation of acquired rights. According to Oliveira, the PMDB supports full retirement benefit payments of up to R$ 2,400, which is under negotiation among the leaders of the Administration's support base.

With respect to tax reform, Oliveira informed that the PMDB has defined its position and considers essential the sharing of revenues between the federal government, the states, and municipalities; creating a Compensation Fund for states in the North and Northeast; making part of the Constitution a Compensation Fund for states that export; and establishing tax incentives of up to 15% of the uncommitted part of the budget for states in the North, Northeast, and Center-West. (DAS)