Brazil’s Finance Ministry and the Central Bank are moving toward a new version of a constitutional amendment proposal that would expand the institution’s financial autonomy, according to reports from Folha de S.Paulo. Finance Ministry official Dario Durigan said there is an agreement with Central Bank president Gabriel Galípolo to submit a revised text together. He said the new draft should be delivered soon to fix what the government sees as problematic points in the current version.
The proposal, known as the PEC of the Central Bank, has been in the Senate since 2023 and faces resistance from the Workers’ Party, or PT, and other members of President Luiz Inácio Lula da Silva’s government. Last week, rapporteur Senator Plínio Valério presented a substitute bill that would turn the Central Bank into a “special public entity” with budgetary and financial autonomy. PT senator Rogério Carvalho submitted a separate opinion calling for the proposal to be rejected, and the vote was postponed after a collective request for more time in the Constitution and Justice Committee.
Government allies argue the current text grants too much autonomy to the Central Bank and could reduce state control over the institution. The expected revised version, built from the Durigan-Galípolo agreement, is not expected to use the terms “autonomy” or “independence,” although it may still provide some level of financial emancipation. The idea, according to people involved in the talks, is to give the bank freedom to invest in projects and technology while keeping state control over hiring and salaries.
Senate committee chair Otto Alencar said Galípolo and Durigan met on Monday, May 25, to discuss the issue and narrow their differences after a request from President Lula. Alencar said he intends to put the current report to a vote in the committee after the Corpus Christi recess, on June 4. Senate government leader Jaques Wagner said a solution is being built, but declined to discuss the substance of the new proposal.
The Central Bank has argued that it needs more resources to maintain the Pix instant payment system and strengthen financial supervision. Galípolo warned senators that a lack of funding could weaken the institution and reduce its technical capacity. He pointed to a sharp drop in staff, saying the bank had 5,072 employees in 2006 and only 3,300 this year. He also stressed that the institution needs financial room to operate without becoming trapped in political disputes.
Valério defended his report, saying it protects the Central Bank’s role in managing Pix and preserves the service’s free use. He also said he is open to improvements, but not if they remove the core nature of the proposal. The government, however, believes the issue is mainly budgetary and prefers targeted changes rather than a broad overhaul of the bank’s legal and administrative structure.
The debate has also triggered concerns among unions and some lawmakers about the impact on public employment rules, institutional independence, and public debt. Supporters say the change is needed to strengthen oversight and funding. Opponents warn it could create new risks and weaken government control.
