The recent Law No. 13.874/2019, derived from Provisional Measure No. 881/2019, seeks to regulate a more appropriate relationship between the state and the private sector. In its essence, it fosters investments – both domestic and foreign – considering the national potential. It also brings greater efficiency to the state apparatus by relieving the public machinery of excessive interventionist competence.
Among other principles, it recognizes the vulnerability of individuals in relation to the state (Article 2, IV) and, as one of the rights of entrepreneurs, the right to enjoy a presumption of good faith in acts performed in the exercise of economic activities. Doubts regarding the interpretation of civil, business, economic, and urban law will be resolved in a manner that preserves private autonomy, unless there is an express legal provision to the contrary (Article 3, V). Additionally, it highlights the importance of Regulatory Impact Analysis (Article 5) in order to duly consider the economic impact of a normative act.
It is a timely legal recognition that the public and private spheres naturally operate at different rhythms. It also represents the consolidation of a new relational culture in which each party has its responsibility within the growth of sectors that drive the national economy. It is not a matter of one side against the other, but simply each one giving their best within their respective roles for the development and economic growth of our country.
In practice, everything should flow smoothly, considering the challenges ahead:
- The binding of public servants to outdated regulatory provisions and excessive administrative penalties.
- The slowness of state responses.
- The normative/legal complexity in Brazil, with numerous scattered regulatory norms and diverse legal interpretations.
- Legal uncertainty for domestic and foreign investors in Brazil, such as issues related to land and taxation, among others.
To make progress every day and establish the possible precepts and interpretations of this new Ordinary Law in each specific case, Brazil will need the effective contribution of all, both technically and legally.