May 25 (Reuters) - Allegations of corruption against Brazilian President Michel Temer has triggered a political crisis that threatens to end his center-right government and derail his pro-business agenda that includes pension reform and privatizations.
His allies in Congress are already privately considering a replacement to lead the reform agenda that investors see as paramount for Brazil to emerge from its worst recession.
Here some of the main legislation and measures that could be delayed, watered-down or even shelved by political uncertainty:
* At the heart of the Temer’s reform agenda is an unpopular constitutional amendment to set a minimum age of retirement that would make Brazilians work for longer. The proposal, which is ready for an initial vote in the lower house, also cuts pension and other benefits to save about 600 billion reais ($182.8 billion) in spending over the next ten years. Before the crisis the government was already struggling to gather the 308 votes needed to approve the measures that requires to votes in each of the houses.
* Another key piece in Temer’s pro-business drive is a bill that relaxes restrictions on temporary workers and outsourcing, and lets agreements between unions and employers override some labor laws. The labor reform just needs to clear the Senate floor to pass.
* Finance Minister Henrique Meirelles said the government was preparing a bill to modernize the country’s Byzantine tax system. The tax reform, initially expected to be submitted in the second half of the year, aims to overhaul duties for key sectors such as oil and gas and banking.
* Temer planned to send legislation this year to allow foreigners to own land in Brazil. Since 2010 foreigners are banned from buying large farms in one of the world’s largest agricultural markets.
* In April, Temer submitted legislation to remove limits to foreign ownership of local airlines in an attempt to bring fresh investment. The bill is under debate in a congressional committee.
* Congress has yet to ratify several presidential decrees that aim to cut public expenditures such as rolling back some payroll tax breaks and bolster fiscalization of unemployment benefits. Another decree to set a new long-term corporate rate for state development bank BNDES awaits approval.
* Although stuck in Congress for years, the government wanted to rework legislation to open up the mining sector in one of the world’s biggest producers of iron ore.
* Temer also planned to request membership to the Organisation for Economic Co-operation and Development (OECD), a think tank that advices rich nations.
* The government has scheduled several oil and natural gas rights auctions, including two off-shore pre-salt oil auctions for later this year. The government is also preparing to privatize several highways in the main grain-producing states.
* State-run power utility Eletrobras is preparing to sell six electricity distributors and five hydroelectric plants. Government officials have told Reuters they are worried lightened political uncertainty could reduce the bidding price of some of those projects. ($1 = 3.2823 reais) (Reporting by Alonso Soto; Editing by Marguerita Choy)