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PEC 12 Public Precatorios Debt in Brazil

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Text of the PEC was written by Nelson Jobim (former Deputy, former Min. of Justice, former Supreme Court Justice and actual Min. of Defense);

PEC was a request from the governors and mayors of PMDB;

PEC was introduced in the Senate by Senator Renan Calheiros (PMDB);

PEC stayed in the Committee of Constitutionality and Justice- CCJ for 2 years;

PEC was not approved before due to the removal of President Renan Calheiros of the Presidency of the Senate at the end of 2007;

Brief History

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The principal rapporteur of the PEC at the CCJ, Valdir Raupp (PMDB), articulated the process of the PEC since the fall of Renan Calheiros;

The Senator Katia Abreu was the rappourteur of the Plenary amendment presented to the PEC;

In the Senate, PMDB, was the party that pressure the most for the approval of the PEC;

Three months after Senator José Sarney, from PMDB, took office as the president of the Senate, the PEC was approved;

Brief History

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Voting Map for 1st and 2nd roundsApril 1st

Party Party Size Registered

PMDB 19 14

DEMOCRATS 14 11

PSDB 13 13

PT 12 9

PTB 7 4

PDT 5 4

PR 4 3

PSB 2 1

PRB 2 1

PCdoB 1 1

PP 1 1

PSOL 1 0

TOTAL 81 62

Yea Nay *N/R

12 0 7

8 0 3

11 0 2

8 0 4

4 0 3

4 0 1

3 0 1

1 0 1

1 0 1

1 0 0

1 0 0

0 0 0

54 0 23

* Vote not Registered or Senate Absent or Senator voted on Neither Yea or Nay

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At the Committee of Constitutionality and Justice (CCJC) waiting on the report regarding the constitutional admissibility of it.

The merit will be discussed in the Special Committee and in the Plenary. Approved without modifications - will be promulgated by Congress. Modifications in the Chamber - Will return to the Senate. Voting forecast for the CESP- November 09. Voting forecast for the Chamber - December 2009. General Election - 2010. September 2010 – end of the period for installment payments of precatorios (PEC 30/00). A new PEC needs to be approved otherwise we will stay without a transitional rule.

PROMULGATION

Chamber of Deputies

Federal Senate (To vote the amendments presented at the Chamber of Deputies)

Federal Senate

*CCJC

CCJ

PEC Precatórios

CESP

CCJ PLENARY – 2ND ROUND

PLENARY – 2ND ROUND

PLENARY – 2ND ROUNDPLENARY – 1ST ROUND

PLENARY – 1ST ROUND

PLENARY – 1ST ROUND

Present Status:

* Present Status

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Began his political carrier in 1994, when he joined the Progressive Party (PP);

Secretay of Housing for the Government ot the State of Rio de Janeiro (1999);

Chairman of the State Housing Company of Rio de Janeiro Cehab-(2000). State Deputy for Rio de Janeiro (2001); Federal Deputy ( 2002); Changed party -PP for PMDB – ( 2003) President of the Committee of Constitutionality and Justice (CCJC) in the

Chamber of Deputies ( 2008).

Dep. Eduardo Cunha’s Profile

2nd term in the Chamber; Born in do Rio de Janeiro - 51 years old; Bachelor degree in economics from the University

Cândido Mendes; President of the telephonic company of the State of Rio

de Janeiro (former Telerj) from 1991 to 1993;

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Rappourteur of important energy and tax issues;

Among the 4 most important Deputies in the PMDB Brasília;

Most important articulator to the victory of Deputy Michel Temer as President of the Chamber of Deputies;

Articulated the appointment of several political positions within the Federal Government;

Dep. Eduardo Cunha’s Profile

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Especial Committee

Considerations:

After concluding the voting of the PEC in the CCJC there will be a meeting of leaders to negotiate the roles and positions in the Special Committee;

All the members of the Special Committee will be appointed by the party leaders;

The PMDB will probably have the presidency of the committee or the rapporteur of the PEC;

Because it is the biggest party in the Chamber of Deputies and the rule of party proportionality has to be respect, PMDB will have the largest number of members in the Special Committee;

Ten sessions to present amendments;

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Political Components

States and Municipalities

All members of Congress are being pressured in order to approve the PEC given that the political bases on the States and Municipalities has demanded resources to pay their debts due to the economic crises.

National Support

Influent Governors and Mayors that support José Serra (PSDB), governor of the State of São Paulo, and the mayor of São Paulo, Gilberto Kassab, have already spoken in favor of the approval of the PEC. This indicates that this is not a partisan discussion between the Government and the Opposition.

Henrique Alves (RN)

Vaccarezza (SP)

Ronaldo Caiado (GO)

José Aníbal (SP)

Mário Negromonte (BA)

Jovair Arantes (GO)

Rodrigo Rollemberg (DF)

Fernando Coruja (SC)Sandro Mabel (GO)

Brizola Neto (RJ)

Daniel Almeida (BA)

Sarney Filho (MA)

98 deputies

77 deputies

57 deputies

57 deputies

39 deputies

23 deputies

30 deputies

13 deputies43 deputies

25 deputies

12 deputies

14 deputies

Party Leaders

PPS2,5%PTB

4,2%

PDT4,8%

PR7,9%

Others2,7%

PSC2,2%

PV2,7%

PCdoB2.3%

PT15,4%

PSB5,6%

PMDB18,7%

DEM11,3%

PSDB11,3%

PP7,6%

Party Deputies %

PMDB 98 18,7

PT 77 15,4

PSDB 57 11,3

DEMOCRATAS 57 11,3

PR 43 7,9

PP 39 7,6

PSB 30 5,6

PDT 25 4,8

PTB 23 4,2

PV 14 2,7

PPS 13 2,5

PCdoB 12 2,3

PSC 11 2,2

PMN 5 0,9

PRB 3 0,5

PSOL 3 0,5

PHS 2 0,3

PTC 2 0,2

PTdoB 1 0.2

PRTB. 1 0,2

TOTAL 513 100

Updated 05/ 08/2009

Chamber of Deputies - Profile

GOVERNORS

27

07

PMDB BRASIL

STATE MINISTRIES

06

26

PMDB

SENATORS

19

81

PMDB

FEDERAL DEPUTIES

96

513

PMDB

MAYORS SMALL CITIES

1.197

5.564

PMDB BRASIL

MAYORS CAPITALS

5

26

PMDB BRASIL

CITY COUNCILMEN

8.308

52.137

PMDB

President of the Chamber of Deputies Michel Temer (PMDB/SP)

President of the Federal Senate José Sarney (PMDB/AP)

The Strength of PMDB

Contact Information

Renata Jara

Partner

Phone: (202) 822-6420

Cel: (202) 403-1028

1101 17th Street, NW suite 1010

Washington, DC 20036