The Brazilian Congress has voted to approve long-delayed reforms of the pension system, delivering an important victory to the government of President Fernando Henrique Cardoso.

The measures will set minimum retirement ages and reduce the privileges of civil servants.

The reforms, held up for more than three years, will have only a limited impact on Brazil's huge budget deficit.

But the BBC Brazil correspondent says with this vote, the government has passed a significant test in its efforts to rescue the country's battered economy.

Our correspondent says the government will also now be more hopeful that Congress will approve a wider package of austerity measures designed to rstore confidence among international investors.