Brasília, August 7, 2003 (Agência Brasil - ABr) - The Social Security reform passed a critical test in the early morning hours today, when the most controversial item in the text, contributions by retirees, was voted and approved. There were 326 votes in favor, 163 against, and one abstention. Taxing retirees was rejected three times during the Administration of Fernando Henrique Cardoso. Yesterday, the government's parliamentary support base split the PFL and PSDB (opposition) party blocs. The amendment to vote on this item separately received 31 votes from the PFL and 26 from the PSDB. All 8 PT deputies who abstained, Tuesday (5), in the vote on the main text of the reform, voted in favor of taxing retirees.

Also approved was an increase in the sub-ceiling for state magistrates equivalent to 90.25% of the salary (R$ 17,720.00) received by Ministers of the Federal Supreme Court. State prosecutors were included in this sub-ceiling. The session was ended at 4 A.M., and the president of the Chamber, Deputy João Paulo, scheduled the votes on the two remaining amendments for next week.

The president of the PT, José Genoíno (SP), said that the government's support base feared the rejection of the amendment authorizing the taxation of retirees. This led to an intense campaign to assure the 308 votes necessary to maintain this item in the text. He added that relations with the 8 PT members who abstained on the text of the reform have been restored. "We set the scoreboard back to 0," he affirmed.

The day in the Chamber of Deputies was marked by countless meetings of party leaders in search of an agreement that would make it possible to conclude the first round of the floor vote on social security reform. Just as when the bill was reported and voted in the Special Commission on Social Security Reform, protest demonstrations also invaded the Congress yesterday. In all, 52 windows in the Chamber's main facade were smashed by protestors (195 square meters, R$ 20 thousand worth of damage). (DAS)