Report: Carla Araújo – STF does not believe in an agreement in court orders and sees as a way out to remove expenses from the ceiling

The president Jair Bolsonaro has the political promise of boosting the new Bolsa Família, renamed Auxílio Brasil, but Guedes has already warned that without solving the impasse – which involves the payment of almost R$ 90 billion in debts recognized by the courts – there will be no way to expand the benefit.

According to the column found, in the STF (Supreme Federal Court) the solution that had been worked out with the president of the Court, Luiz Fux, and with the minister of the TCU (Court of Accounts of the Union), Bruno Dantas, and was being dubbed the “CNJ solution”, should no longer thrive.

The draft resolution of the CNJ (National Council of Justice) established that the amount of the expense that exceeds the court-ordered ceiling would be shifted to the following year and must be included in the Budget as a primary expense.

Despite Fux’s support, there was resistance from other ministers in relation to the ‘CNJ solution’, since the assessment is that it would not be up to the body to coordinate an exit that could end up having to be validated later by the Supreme Court.

For members of the Judiciary, the best path for the government remains via the Legislature.

More than that, the Supreme Ministers believe that a PEC that removes the precatoria from the spending ceiling can be a more peaceful solution legally. This is because a good part of the debts are related to the former Fundef (Education Fund) and removing this expense from the ceiling could have less resistance.

Supreme placed court orders on the agenda

This Thursday (16), the STF included in the agenda the judgment of an appeal that discussed whether the seizure of state financial resources was constitutional in the case of compulsory payment in installments of a precatório. There was a request for a review and the trial was not concluded.

The Supreme Court has several decisions on the subject, but the current understanding is for the unconstitutionality of the subdivision of court orders.

Judiciary sources say that the issue was already scheduled to be analyzed and that it has no connection with the current situation, since the judgment deals with old court orders and is not related to the current government debt.

Despite this, these same sources recognize that if the Supreme Court reaffirmed its position, it would be a sign of the unconstitutionality of the measure that Guedes wants to enact.

The STF minister, Gilmar Mendes, asked for a view – that is, more time to analyze the case – which, at least for today, avoided another defeat for Guedes.

“There was a risk that the PEC of Precatório would be ‘stillborn’ if the STF voted to maintain the current understanding,” said a government source.

Next week

The issue of court orders should still be the number one priority of the economic team that celebrated the signal from the president of the Senate, Rodrigo Pacheco, that he wants to try to find a way out of the problem “next week”.

“I believe that we will soon resolve this issue of precatories. Next week, we will look into this matter to provide a definitive solution. It is essential that this happens in Brazil even so that we can face other problems. After all, a problem is what it is not. We have to solve one today, solve another tomorrow and so on,” stated Pacheco, on Thursday.

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