1. MONTHLY
NEWSLETTER
Burson-Marsteller
January
Public Affairs
2018

2. Burson-Marsteller l Public Affairs
An intersecting agency that, through the understanding of the political environment,
assists clients of different sectors in the protection and/or promotion of their businesses,
managing their influence in a sustainable way.
The Burson-Marsteller standard is responsible for the development of highly customized
projects, according to the needs of each client, developing strategies for various economic
sectors, especially those heavily regulated by the government.
Contributors to this edition
Allana
Rodrigues
Isabela
Girotto
Luciana
Lemgruber
Fernanda
Xavier
Nara
Andrade
Isabela
Macêdo
Index
Year 2 | Nº 01 | January
03 Politics | Presidential candidates: The hour Rodrigo Maia
04
Politics | Fake News, social media and political debate: a
recipe that can change the flavor of 2018 Brazilian Elections
05 Law | The hierarchy of the Powers of the Union
07
Politics| Congresso Nacional em 2018: Eleições definirão
pautas
09
Infografic | Scenario and uncertainties: Perspectives for
ministries on the Esplanade
10
Economic | National Congress in 2018: Elections to set
guidelines
11 Economic Data
12 Events Calendar
Anna
Paula Losi
Bruno
Traversin

3. Successor of Eduardo Cunha, the current president of the House of Representatives, Rodrigo
Maia (DEM / RJ), has two decades of parliamentary experience in the House. Chosen to occupy
or exercise a mandate, due to the dismissal of his predecessor, Maia won in the second round
despite of the favorite of the Planalto Palace, Rogério Rosso (PSD / DF). Since taking office as
president in 2016, Maia has stepped up and worked against the impeachment process of
President Michel Temer, defended the approval of labor reform and has been a fervent ally in
favor of pension reform.
Like its party, the Democrats, Maia realized in the political moment the opportunity to launch
itself to the presidency of the Republic. Not so much for his popular appeal or experience with
the Executive's guidelines, but in favor of a concept that aims to create bases for center
applications. In this sense, the party emphasizes the "capacity for dialogue, balance and serenity
to make decisions" of its pre-candidate.
The movements that permeate Maia's performance towards the candidacy are characterized by a
peculiar type of strategic duality: leadership of the Centrão, composed of PP, PR, PSD, PRB and
PTB; and alignment with the reformist proposals of the ruling party, the PMDB. However, Maia is
worried about Temer's recent announcement: his party plans to present its own candidate for the
presidential election.
Regarding the first strategy, the official support of the parties of the Centrão would guarantee
more time of political propaganda in the television and, therefore, would increase the popularity
of Rodrigo Maia, that did not perform well in its political stronghold in the last elections. Although
elected, his performance was meager compared to previous performances.
The other members of the Democratic party emphasize the good transit of the representative
between the Executive branch, the Judiciary and the left, center and right parties, which,
according to them, would be necessary and sufficient to unify the country. In addition, the DEM
intends to launch more candidates for state governments in a short and long-term project aiming
to expand the party and expand its power and influence.
However, Maia's chances of being promoted to the top position of the executive branch are
doubtful, although his efforts to do so may secure a second term in the presidency of the House
of Representatives. Both because polling surveys have performed well below expectations, and
because of the DEM's ability to fill the political cravings and gaps emanating from the void of
credibility experienced in recent years of scandals.
Politics
Presidential candidates: The hour
Rodrigo Maia
3

4. The so-called fake news are nothing more than false news that appear to be true. In society
there has always been this phenomenon, but with the new technologies of communication and
information, the scale in which fake news can be produced and diffused is what makes them
much more dangerous, bringing doubt to the truthful news, after all, how to know if something
we see on social networks is true or not?
The most relevant public debates are directly impacted by these false news, such as the elections
in the United States and plebiscites on the BREXIT and on the peace agreement between the
Colombian government and the Revolutionary Armed Forces of Colombia (FARC). In a
presidential election year, the fake news ghost also begins to haunt Brazil.
The regulatory and supervisory institutions already design the first strategies to combat fake
news producers. The Supreme Electoral Tribunal (TSE) announced in January of this year that it
will set up a standard of action to combat the creators of this news, with the assistance of the
Brazilian Army, which will provide equipment, especially in the area of cybernetics with software,
the Federal Police and the Federal Public Ministry. Luciano Fuck, Secretary-General of the
Presidency of the TSE, stated that "it is a new subject in all major democracies and we are trying
to anticipate it.“
The motivations of the fake news creators can be political, but most of the time they are related
to the profit generated by the accesses of curious users. In addition, the use of robots and boots
made the spread of these rumors even faster. In April 2016, a study by the Research Group on
Public Policies for Access to Information (Gpopai-USP) showed that three of the five news most
shared by Brazilians on Facebook during the decisive impeachment week were clearly false.
Furthermore, another survey done by the same institution in 2017, indicated that 12 million
online profiles regularly share false news on social network in Brazil.
The fight against these rumors is complex and already becomes a worldwide political concern:
the definition of fake news is not clear or unanimous and involves issues of freedom of
expression. The European Commission has set up a working group whose initial task will be to
develop a definition of fake news and in 2017 the UN released the Joint Declaration on Freedom
of Expression and “Fake News”, Disinformation and Propaganda, stating that fake news are a
global problem, erode the credibility of the press and interfere with the right of people to
information. However, many experts argue that the creation of new normative devices and
punishments can be dangerous, since there is a risk of approaching authoritarianism and end up
curtailing freedom of expression, mainly because it is a phenomenon without a well-defined
concept.
Politcs
Fake News, social media and political
debate: a recipe that can change the flavor
of 2018 Brazilian Elections
4

5. In an election year, the threats are even more eminent. Social media becomes a dubious tool,
since it can both be a strategic weapon for the candidate's campaign, or it can undermine their
chances in the suit, especially considering fake news threats. The use of Big Data, large set of
stored data, brings the possibility of the candidate discovering the intimate desires of each
person, offering personalized messages and adopting the formats that appeal to you, in scales
never imagined. Donald Trump, in the last presidential campaign of the United States, used this
technique and companies of this kind already operate in Brazil, offering services of this nature.
In December, the TSE released, along with the electoral calendar, resolutions on electoral rules,
also covering the virtual environment, and kept limits on internet advertising: advertisements
may only appear on candidate websites, parties and coalitions, being forbidden in pages
belonging to individuals or private companies. These rules can be changed until March 5th, when
they will be published. The possibility of pushing publications, and especially segmenting them, is
extremely damaging to public debate. Through a segmented sponsored publication, a candidate
can say that he stands for some position for those who agree with this idea and speak the exact
opposite for those who disagree, without these opinions being visible to people who look on his
page for information on proposals.
In Brazil, the new media and information dynamics make it imperative for voters to be even
more attentive to the advertisements, platforms and news posted online, taking into account that
many presidential candidates who have begun to organize their campaign strategies point to the
internet and social networks as important front of political action, since they will have little time
in the television.
Politics
5
Our Constitutional text in its article 2, states that "are Power of the Union, independent and
harmonious between each other, the Legislative, the Executive and the Judiciary." The powers
must, therefore, obey a balance between them, without hierarchies or confusions. However,
what has been happening in the Brazilian scenario is a submission of the Legislative and
Executive Powers to the Judiciary.
This discreet occupation of the Judiciary over the Legislative and Executive space deserves
attention. If on the one hand it seems the beginning of an institutional crisis or a usurpation of
power, on the other hand it is shown as a mere political strategy or even a conscious transfer of
responsibilities by a legislature afraid of discussing exhausting issues.
With a weakened and doubtful body politic in the eyes of the population, the judiciary takes the
reins and starts to conduct politics. Without entering into the merits of right or wrong, the fact is
that who defines who will be the next presidential candidates is the judiciary; who defines
controversial issues as abortion, is the judiciary; who alters the judicial procedure is often the
judiciary itself. The problem: judges are not elected. They are approved in competitions to decide
technical questions. The position is not geared to political decisions.
The hierarchy of the Powers of the Union
Law

6. Another important axis that characterizes the judicialization of politics is the increased impact of
judicial decisions on political causes. Thus, even if technical judgment is necessary, cases such as
the one that we have followed last month, in which former President Lula is condemned by the
TRF-4 collegiate, have a significant impact on the country's politics. It is necessary that the
judiciary intervene, but the effects of the intervention are more complex.
In a single trial, our entire political and economic landscape is modified. They are the presidential
elections, the political games, the strengthening of the currency, everything in the hands of a
collegiate of judges. It is clear that crimes must be judged technically by judges and otherwise
there would be a burden to the other side of the scale, but what is discussed are the facts and
effects generated. Our Legislative and Executive are weakening and strengthening the judiciary.
The former president becomes ineligible under the law of a clean sheet, sanctioned by himself,
which provides that candidates condemned by collegiate bodies can not apply. The norm is
simple, but in a juridical and political game, numerous interpretations appear, including the one
that contemplates the constitutional statement that determines as fundamental right that
"nobody will be guilty until the final sentence of condemnatory criminal sentence".
Once again, with a judiciary beyond its role, the Supreme Court contradicts, curiously following
the conviction of the former president, the summary edited by the Court itself, which allowed
convictions in second instance to be subject to early arrests, replacing the constitutional
statement as superior. That is, the judiciary modified the Constitution and went back.
There is no way to claim to be a political game, but it is clear that there is a hierarchy of Powers,
weakening the political process as a whole and the Democratic State of Law, more and more. It
is therefore necessary to strengthen the Powers, individually, so that the Institutions become
stronger.
Law
6

7. With the holding of elections in October 2018, the National Congress is expected to concentrate
its activities in the first half of the year. Standing committees in both houses should work
intensely, working to "clear" their guidelines. However, the electoral calendar should define not
only the pace of work in legislative houses, but also its guidelines.
The president of the Chamber of Deputies, representative Rodrigo Maia (DEM/RJ), has spoken of
strategic measures for the government, such as the Pension Reform and the privatization of
Eletrobras, but also to make a concerted effort to vote on proposals related to public security, for
example. In the Federal Senate, there is not a consolidated definition of agendas, but it is
possible that the focus will also be on public security and regional development issues. In both
houses, however, it is expected that controversial issues will be postponed so as not to
negatively impact the campaigns of parliamentarians.
One measure that has already faced resistance for this reason since last year is the Pension
Reform. With the spotlight on the Chamber of Deputies seeking a definition on the measure, the
proximity of the elections is a decisive factor and has made it difficult to support the
government's proposal. Even with the changes in the text presented by the rapporteur of the bill,
representative Arthur Oliveira Maia (PPS/BA), at the end of 2017, allies of the government base
of Michel Temer have admitted that they did not raise the 308 votes necessary for the approval
of the matter in the House Plenary. In an interview on January 26, representative Arthur Oliveira
Maia reported that Minister Carlos Marun, responsible for the government's political articulation,
currently counts 275 favorable votes to the measure and 55 names of deputies who are still
undecided about their position.
Although the speech of the government and its allies is that the attempt to vote on the matter
will be held on February 19, there is talk of postponing the appreciation of the PEC for November
after the elections. In this way, the undecided deputies would be less fearful of negative
reactions from their bases and could finally sew agreement to approve the matter.
The privatization of Eletrobras, on the other hand, has already provoked controversy, but it
should not face the same resistance as the Pension Reform. At the end of December 2017,
President Michel Temer signed Provisional Measure 814, which, among other points, revoked the
prohibition on the privatization of Eletrobras and its subsidiaries. The proposal was not well
received, including by the president of the Chamber of Deputies, who criticized that the
government sent a provisional measure, which has immediate effects. On January 11, Judge
Carlos Kitner, of the 6th Federal Court of Recife, suspended, through an injunction, article 3 of
said MP, which determines the revocation of the provisions of the Law in relation to Eletrobras,
based on a popular action filed by the lawyer Antônio Accioly Campos.
Given this scenario, the government sent PL 9463/2018, which regulates the privatization of the
energy sector in Brazil, to the National Congress, to be made from the increase in the capital
stock of Eletrobras and its subsidiaries. Deputy Rodrigo Maia said that the proposal should be
approved by April.
Politics
National Congress in 2018: Elections to set
guidelines
7

8. Another project published in 2017 should focus debates in the first half of the Legislative's work.
Provisional Measure 808/2017 reviews points of the Labor Reform (Law 13467/2017) approved
the same year by the parliamentarians and sanctioned without vetoes by President Michel Temer.
Among the main points changed by the provisional measure are:
• For intermittent work, the Work Card should indicate the value of the employees' time or work
day, as well as the term for payment of the compensation. Workers hired by this type of contract
will be entitled to holidays to be divided up to three periods, maternity wages and sickness
benefits. There will be minimum requirement of 18 months to hire a former employee as
intermittent. Intermittent work was the subject most approached by the amendments presented
by parliamentarians.
• the use of workers' wages as a parameter for compensation for moral damages was abolished;
• contracts that provide 12 hours of work for 36 hours of rest followed should be the result of
collective bargaining, no longer by direct agreement between worker and contractor, except for
the health sector;
• Pregnant and nursing mothers may work in an unhealthy place, provided they voluntarily
submit a medical certificate authorizing continuity of work.
967 amendments were submitted to the proposal, which should still be submitted to the Joint
Committee and the plenaries of the Chamber of Deputies and the Federal Senate. There is no
designated rapporteur yet, but the name of deputy Rogério Marinho (PSDB/RN) is already
mentioned, which reported the PL of Labor Reform in the Chamber of Deputies.
The payroll reoneration bill (PL 8456/2017), important for the Executive to meet the fiscal target
of 2018, approved by Parliament in December, may face difficulties for approval, since its effects
would be postponed until 2019.
For the Federal Senate, there are still no big anticipations. During the year, the House must be
emptied, considering that in the 2018 election, voters will renew two thirds of their composition.
While many of the senators, including President Eunicio Oliveira (PMDB/CE), are moving towards
their campaigns, there is no definite agenda as in the Chamber of Deputies. An important project
awaiting distribution to commissions is PLC 79/2016, which changes the regulatory framework for
telecommunications. The project is not part of the priority agenda of Senator Eunicio Oliveira, on
whom the distribution to the commissions depends, but is widely defended by the Minister of
Science, Technology, Innovation and Communications, Gilberto Kassab. Besides this matter, it is
possible that the senators invest in regional development guidelines, aiming at measures in their
electoral bases.
In sum, although the expectation is for a half-year of intense work, Congress members should
avoid issues they deem controversial and that may have an impact on their campaigns. This
stance could undermine the vote on expensive issues to the government of President Michel
Temer, especially the Pension Reform. In addition, in both Houses, the focus could be on issues
with greater popular appeal, such as public safety, and less on structural changes such as tax
reform and payroll reoneration.
Politics
8

9. Infographic
9
Scenario and uncertainties:
Perspectives for ministries on the Esplanade

10. Infográfico
10
Scenario and uncertainties:
Perspectives for ministries on the Esplanade

11. The globalization, a phenomenon accelerated in the last century and characteristic of the Third
Industrial Revolution (also called the Technical-Scientific-Informational Revolution), reflects a
process of economic, political and cultural expansion worldwide. Thus, the evolution of the
technologies of transport, communication, cultural approximation and the consequent shortening
of geographical distances was promoted.
In this scenario, it was possible to increase trade among nations, as well as the speed of trade.
With regard to these economic factors, it is worth noting the increase in world trade, through the
promotion of competition between markets, the formation of transnational corporations
(corporations operating in different countries) and, finally, the creation of economic blocks aimed
at joining the competitive advantages.
This set of actions together with communication tools and the actions of governments and
international organizations, provided a new scenario for international relations, based on
increased circulation of the financial market, due to the greater interconnection/integration of the
national economies. Thus, it is important to highlight the changes promoted by globalization of
the economic system, based, for example, on the creation of new forms of payment, such as
virtual currencies.
Also called cryptocurrency, virtual currencies were born in a scenario of cyber relations and in an
innovative way, in order to meet the new yearnings of ever more digital economic relations.
Therefore, it is worth mentioning that in 2017, a famous virtual currency, Bitcoin, became, for
the first time, more valuable than gold, a metal that gives value to money.
Given the global and surprising socioeconomic impact, several regulatory bodies of the financial
system have manifested themselves. In Brazil, it was no different: at the beginning of this year,
the Securities and Exchange Commission (CVM, in Portuguese) banned administrators and fund
managers in the country from investing in cryptocurrency. According to the Commission, there
are many risks associated with virtual currencies, such as their safety and legality. It is worth
emphasizing that, after this statement, the currencies lost value significantly.
In this scenario, it becomes noticeable the difficulty of the bodies, in general, to adapt the news
of the financial system, as in this case. Thus, it is worth the perception about the need to
modernize regulation so that it is possible to foment new forms of economic, social and political
relationship.
Economic
Economic globalization: virtual currencies
11

12. Economic Data
12
MONTH DOLAR
IPCA
(accumulated
12 months)
SELIC IBOVESPA
PROJECTION PIB
2018
APR.2017 3,17 4,08% 11,25% 65.309,81 0,43%
MAY.2017 3,26 3,77% 11,25% 63.906,99 0,5%
JUN.2017 3,30 3,00% 10,25% 62.238,95 0,39%
JUL.2017 3,15 2,71% 9,25% 65.316,30 0,34%
AUG.2017 3,14 2,46% 9,15% 70.727,08 0,39%
SEP.2017 3,17 2,54% 7% 73.626 0,68%
OCT.2017 3,26 3,08% 7% 73.323 0,73%
NOV.2017 3,27 3,08% 7% 71.971 0,73%
DEC. 2017 3,31 2,79% 6,9% 75.996,68 0,98%
JAN. 2018 3,17 3,95% 6,75% 85.329,20 2,66%
Source: Boletim Focus/Banco Central

13. Events Calendar
SUN MON TUE WED THU FRY SAT
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
ANATEL Board of
Directors Meeting
Local: ANATEL
Headquarters
Ordinary Meeting of
the Board of
ANVISA
Local: ANVISA
Headquarters
CONITEC MeetingCONITEC Meeting
IEEE 4th World Forum on Internet of Things
Local: Singapore
ChemCon The Americas 2018
Local: New Orleans, United States
Agro Seminar:
Financing for
Agribusiness
Local: CNA
Headquarters
2018 Campus Party
Local: São Paulo, SP
MEDLAB
Local: Dubai
ANATEL Board of
Directors Meeting
Local: ANATEL
Headquarters
Seminar of the
Legislative Agenda -
Industry Network
Local: CNI
Headquarters
Carnival
13

14. Events Calendar
SUN MON TUE WED THU FRY SAT
18 19 20 21 22 23 24
25 26 27 28 1 2 3
GSMA Mobile World Congress 2018
Local: Barcelona, Spain
1st National Conference on Health Surveillance 2018
Loccal:: Brasília , DF
Ordinary Meeting
of the Board of
ANVISA
Local: ANVISA
Headquarters
New President
FPA's Solemnity of
Possession
Local: Dúnia City
Hall – Lago Sul,
Brasília
World Rare Disease
Day
Celebrating Rare Diseases in the National Congress
Local: National Congress
14