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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

Singer seriously injured after knife attack in Tokyo’s Akasaka District

A woman in her forties was stabbed on Sunday by a man in Tokyo’s busy Akasaka district, leaving her with serious injuries, according to local media reports.

At around 10:25 a.m. (local time), police received an emergency call reporting that a woman was bleeding after being attacked with a knife by a man wearing a black hood in the basement of a building in Akasaka, police sources told Kyodo News.
The woman sustained severe injuries to her abdomen and hand but was conscious when she was transported to a hospital, Tokyo Metropolitan Police said, adding that the suspected assailant fled the scene with what appeared to be a knife.

The victim, believed to be a singer, was reportedly attacked while waiting alone outside a live music club where she was scheduled to perform.

Police stated that they are searching for the suspect and noted that the woman did not know him.

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International

Ombudsman confirms deaths of six minors in bombing targeting FARC dissidents

Colombia’s Ombudsman’s Office reported on Saturday the deaths of six minors who had been recruited by guerrilla groups, killed during the deadliest airstrike ordered by President Gustavo Petro in an Amazonian region in the south of the country.

Amid pre-election criticism and pressure from the United States demanding stronger action against drug trafficking, Petro has intensified military operations against armed groups. Over the past week, a series of bombings have left 28 people dead.
The minors were killed in an airstrike announced on Tuesday against a camp belonging to dissident factions of the now-defunct FARC guerrilla in the department of Guaviare, resulting in 19 deaths—the largest operation of its kind under Petro’s administration.

“This is all deeply regrettable; it is war in its most painful and inhumane expression, harming the most vulnerable—minors recruited due to lack of protection and now turned into military targets,” said Ombudswoman Iris Marín in an audio message sent to the press, confirming the deaths of six minors without providing their ages.

Marín held the guerrilla group led by the country’s most-wanted man, alias Iván Mordisco, responsible for recruiting the children.
However, she also stressed that “the military forces must take every feasible precaution to protect children,” in accordance with international principles that require “careful evaluation of the means and methods of warfare to avoid disproportionate or unnecessary harm.”

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International

Colombia reaches $4.5 billion deal to acquire 17 Gripen Fighter Jets from Saab

The Colombian government has finalized a negotiation agreement with the Swedish company Saab for the purchase of 17 SAP-39 Gripen fighter jets, valued at more than $4.5 billion, according to local media reports.

Colombian outlets indicated that payments are scheduled to begin in 2026, starting with an initial installment of 100 billion Colombian pesos. However, the aircraft will be delivered between 2027 and 2032, when the final jet is expected to arrive in Colombia.

This new contract represents the second-largest public purchase made by Colombia so far this century, surpassed only by the investment in the Bogotá metro system, local media noted.

The agreement is expected to be officially signed during the ceremony commemorating the 216th anniversary of the Colombian Aerospace Force, to be held in Cali on November 14 of this year.

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