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Bolsonaro welfare plan shakes Brazil markets, sparks resignations

AFP

A proposal by Brazil’s far-right President Jair Bolsonaro to dramatically increase welfare payments to the country’s underprivileged groups a year ahead of elections shook markets Thursday and triggered resignations at the Ministry of Economy.

The program could cost the government an extra 30 billion reais ($5.3 billion dollars) at a time when inflation is already high and exceed the government spending ceiling established by law.

The government announced earlier this week that it was setting up a new social welfare program to replace the “Bolsa Familia” system created by the leftist administration of former president Luiz Inacio Lula da Silva.

The new program would start in November with a 20 percent increase in benefits paid to nearly 17 million Brazilians in need.

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Coming just a year before a presidential election in which Bolsonaro is widely expected to be defeated by Lula da Silva, the move was seen by several analysts as a pre-election sweetener.

The measure rattled investors. The Sao Paulo stock market fell 2.75 percent, while the price of the US dollar rose to 5.65 reais, its highest level in six months.  

Concerned by the plan, several economic officials quit their posts, including top treasury officials Bruno Funchal and Jeferson Bittencourt, authorities said.

Bolsonaro denied that his project, whose source of funding has not been specified, is against the law.

“There are around 16 million people registered with the ‘Bolsa familia’, and though the financial aid reaches an average of 192 reais, many people receive 40, 50, 60 reais. What we are saying is: 400 reais for all,” he said Thursday.

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Bolsonaro also offered to “help” 750,000 truckers with compensation for increases in the price of diesel. 

The president made the announcements at a time when his popularity is at its lowest level since he took office in 2019, and amid high inflation and high unemployment.

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International

Mexico City prepares for 13 million pilgrims at Basilica of Guadalupe

The Mexico City government is expecting at least 13 million pilgrims to visit the Basilica of Our Lady of Guadalupe for the December 12 celebrations honoring Mexico’s patron saint. To ensure the safety and care of visitors, authorities have launched the “Basilica Operation,” mobilizing more than 105,000 public servants.

Mayor Clara Brugada stated that the operation began on December 5 and will continue until December 14, covering the peak of visits to the basilica, located in the Gustavo A. Madero borough in the north of the city.

Key measures include reinforcement of the Metro public transport system, particularly at stations near the sanctuary, the installation of three helipads for medical emergencies, and the involvement of Civil Protection brigades, health ministry personnel, and public safety officers.

Secretary of Public Security Pablo Vázquez explained that the deployment also includes 255 patrol units and numerous specialized teams to manage crowds, traffic, and emergency situations, aiming to guarantee a secure experience for all pilgrims.

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Central America

Mexico and Guatemala launch joint security operation after Agua Zarca border attack

The Government of Mexico announced on Tuesday that it has strengthened coordination with Guatemala following an armed confrontation in the community of Agua Zarca, in Guatemala’s Huehuetenango department, where a soldier was wounded in an attack attributed to organized-crime groups operating on both sides of the border.

The Secretary of Security and Citizen Protection, Omar García Harfuch, confirmed that Mexico is exchanging information with Guatemalan authorities and that Mexican Army units have been deployed along the border to reinforce surveillance and assist in reconnaissance operations.

The attack, Guatemala’s Defense Ministry stated, reflects the “criminal dynamics” dominating that border region, where different groups compete for drug and arms trafficking routes.

According to Guatemala’s Defense Ministry, the clash left a soldier wounded in the leg after suspected criminals crossed from Mexico and opened fire. The wounded soldier is reportedly in stable condition. Authorities also seized high-caliber weapons, explosives, tactical gear and drones, which were handed over for forensic analysis.

Mexican Defense Secretary General Ricardo Trevilla Trejo announced that a coordinated plan of operations will be launched involving both Mexican and Guatemalan forces along the border to counter these criminal networks.

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Harfuch emphasized that the violence is not isolated but symptomatic of the ongoing struggle between criminal organizations for territorial control, and reiterated Mexico’s commitment to bilateral security cooperation and its intention to strengthen institutional presence in vulnerable border zones.

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International

Zelensky meets Pope Leo XIV as review of U.S. peace plan continues

Ukrainian President Volodymyr Zelensky met on Tuesday with Pope Leo XIV in Italy, after pledging to deliver a response to the United States regarding the proposed peace plan aimed at ending the war with Russia.

The meeting with the pontiff took place at the papal residence in Castel Gandolfo, near Rome, where Leo XIV “reiterated the need to continue dialogue and renewed his urgent hope that the ongoing diplomatic initiatives may lead to a just and lasting peace,” the Vatican said in a statement.

His visit to Italy follows Monday’s meetings with European leaders in London and Brussels, amid pressure from U.S. President Donald Trump to agree to a peace plan that Zelensky said he is still reviewing.

According to Zelensky, the plan presented by Washington—originally consisting of 28 points—was reduced to 20 after discussions between Ukrainian and U.S. representatives over the weekend. “We are going to work on those 20 points. We are not completely satisfied with the proposals from our partners,” Zelensky said during an online press conference on Monday.

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