Factbox: Pension reform: Brazil’s uphill battle to save 1 trillion reais

Brazilian President Jair Bolsonaro is staking much of his political capital on a plan to shore up the country’s costly social security system, which he hopes will kick-start the country’s economy and boost investor sentiment.

The government is, however, struggling to sell its proposal to the public and lawmakers. Legislation will almost certainly be watered down, and passage through both houses of Congress could be a long, drawn-out process.

What is the government proposing? Why does it matter? And why are markets so sensitive to its every twist and turn?

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