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Tough choices as Brazil’s Lula gets down to business

Photo: Carl de Souza / AFP

| By AFP | Marcelo Silva De Sousa

Fresh off a celebratory beach holiday, Brazilian president-elect Luiz Inacio Lula da Silva got down to uglier business Monday: figuring out how to govern with a hostile Congress, nasty budget crunch and impossible-looking to-do list.

The political horse-trading of the transition period now starts in earnest for the veteran leftist, who will be sworn in for a third term on January 1, facing a far tougher outlook than the commodities-fueled boom he presided over in the 2000s.

Lula, 77, celebrated his narrow win over far-right incumbent Jair Bolsonaro in the October 30 runoff election by escaping last week to the sun-drenched coast of Bahia in northeastern Brazil.

He joked he needed a belated honeymoon with his first-lady-to-be, Rosangela “Janja” da Silva, whom the twice-widowed ex-metalworker married in May.

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His other honeymoon — the political one — could be short, analysts say.

Lula is meeting Monday with advisers in Sao Paulo. On Tuesday, he will travel to the capital, Brasilia, to finish assembling his 50-member transition team and start negotiating with members of Congress, two allies told AFP.

He faces a battle to get bills passed in a legislature where conservatives scored big gains in October’s elections.

Lula’s coalition has around 123 votes in the 513-seat Chamber of Deputies, and 27 in the 81-seat Senate, meaning he will have to strike alliances to get anything done — and even just survive, given the threat of impeachment in Brazil, where two presidents have been impeached in the past 30 years.

Into the shark tank

Lula is expected to meet in Brasilia with lower-house speaker Arthur Lira, a key Bolsonaro ally from the loose coalition of parties known as the “Centrao,” a group known for striking alliances with whoever is in power — in exchange for feeding on the federal pork barrel.

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Lula will be under pressure from the Centrao not to oppose the so-called “secret budget”: 19.4 billion reais ($3.8 billion) in basically unmonitored federal funding that Bolsonaro agreed to allocate to select lawmakers to boost support for his reelection bid.

Meanwhile, money will be tight for Lula’s campaign promises, including increasing the minimum wage and maintaining a beefed-up 600-reais-per-month welfare program, “Auxilio Brasil.”

Bolsonaro, who introduced the program, did not allocate sufficient funding to continue it in the 2023 budget.

“We can’t start 2023 without the ‘Auxilio’ and a real increase in the minimum wage,” the leader of Lula’s Workers’ Party, Gleisi Hoffmann, said Friday.

“That’s our contract with the Brazilian people.”

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Facing the impossible math of funding such pledges without breaking the government spending cap, Lula’s allies are exploring their options, including passing a constitutional amendment allowing exceptional spending next year.

But they are racing the clock: it would have to be approved by December 15.

Markets watching

Lula, who ran on vague promises of restoring Latin America’s biggest economy to the golden times of his first two terms (2003-2010), faces a bleaker picture this time around.

“The challenge is… how to balance fiscal responsibility with a highly anticipated social agenda,” in the face of high inflation and a possible global recession, said political scientist Leandro Consentino of Insper university.

Markets are watching closely — especially his pick for finance minister.

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Lula is expected to split Bolsonaro’s economy “super-ministry” into three portfolios: finance, planning, and trade and industry.

Analysts predict a political choice for finance minister, a technocrat for planning and a business executive for trade.

Names floated for the finance job include Lula’s former education minister Fernando Haddad and his campaign coordinator, Aloizio Mercadante.

COP27 stage

Other closely watched portfolios are the environment and a promised new ministry of Indigenous affairs — both sore spots under Bolsonaro, who presided over a surge of destruction in the Amazon rainforest.

The former job could go to Lula’s one-time environment minister Marina Silva, credited with curbing deforestation in the 2000s.

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In a key gesture, the president-elect will make his return to the international stage at the COP27 UN climate summit in Egypt, where he will arrive on November 14, advisers said.

Silva, who will travel with him, told newspaper Folha de Sao Paulo: “The climate issue is now a strategic priority at the highest level.”

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International

U.S. strike in Caracas killed 32 cuban security officers, experts say surprise was crucial

Two days after a U.S. military attack on a military complex in Caracas, Havana confirmed that 32 members of its security forces were killed in the operation, some of whom were likely responsible for protecting Venezuelan leader Nicolás Maduro. The Venezuelan government also reported that 23 of its own military personnel died during the assault.

Of the Cuban dead, 21 belonged to the Ministry of the Interior, which oversees intelligence services, and 11 were from the Revolutionary Armed Forces. No official information has been released regarding potential injuries.

Experts consulted by AFP agreed that the element of surprise was the key to the success of the U.S. military operation, which was meticulously prepared over months and kept entirely secret. “Cuban intelligence … convinced the Maduro regime and its security agencies that the United States would never attack Venezuelan territory,” explained José Gustavo Arocha, a former Venezuelan army officer and expert at the Center for a Secure Free Society, a U.S. defense think tank.

Fulton Armstrong, a former U.S. intelligence officer and Latin America researcher at American University in Washington, also highlighted the failure to anticipate the attack and to detect U.S. helicopters entering Venezuelan airspace, noting that even a five- to ten-minute warning could have made a significant difference for the guards and for Maduro.

U.S. forces additionally benefited from “incredible” real-time intelligence provided by stealth drones to monitor movements of the Venezuelan leader, according to experts. A highly sophisticated combat team was deployed, and analysts believe the order to “fire to kill” was likely given.

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Paul Hare, former British ambassador to Cuba and Venezuela, added that Cuban intelligence also underestimated the extent of U.S. access to internal cooperation within Venezuela’s security apparatus, contributing to the operation’s success.

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International

Report: Vatican mediation included russian asylum offer ahead of Maduro’s capture

The Vatican reportedly attempted to negotiate an offer of asylum in Russia for Venezuelan President Nicolás Maduro before his capture by U.S. forces last Saturday, according to The Washington Post.

The U.S. newspaper reported that Vatican Secretary of State Cardinal Pietro Parolin spoke with U.S. Ambassador to the Holy See Brian Burch about a supposed Russian proposal to grant Maduro asylum. A source familiar with the offer said that what was proposed “was that he would leave and be able to enjoy his money,” and that part of the plan involved Russian President Vladimir Putin guaranteeing Maduro’s security.

Despite these diplomatic efforts, the United States carried out a military operation that resulted in Maduro’s capture and detention, along with his wife Cilia Flores, who are now being held in New York on narcoterrorism charges.

The Washington Post also noted that U.S. President Donald Trump may have invited Maduro to Washington for in-person discussions about safe conduct, an offer that Maduro reportedly declined.

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International

Pope Leo XIV warns of rising “war enthusiasm” in global politics

“War is becoming fashionable again, and war enthusiasm is spreading.” Pope Leo XIV delivered a somber assessment of international politics on Friday, sharply criticizing the growing reliance on force by nations at a time when his country of birth is increasing military displays.

While offering New Year’s greetings to the diplomatic corps, the U.S.-born pope — who also holds Peruvian nationality — delivered one of his strongest speeches to date, denouncing the “worrying weakening of multilateralism” and the emergence of what he described as “war enthusiasm.”

From the outset of his address to ambassadors accredited to the Holy See, delivered in English, the pontiff lamented the rise of a “diplomacy of force, by individuals or groups of allied states,” at the expense of dialogue, warning that such trends threaten the global order established after World War II.

“Peace is no longer sought as a gift or as a good desirable in itself, or as the pursuit of ‘the establishment of an order willed by God, one that entails greater justice among human beings.’ Instead, it is pursued through weapons as a condition for asserting one’s own dominance,” the head of the Catholic Church said, without directly naming any country.

His remarks come amid ongoing conflicts between Ukraine and Russia and in the Gaza Strip, and against a broader international backdrop marked by European concerns over a potential U.S. takeover of Greenland, the autonomous Danish territory, a scenario that could threaten the cohesion of NATO.

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