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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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Six killed, including baby, in armed attack near tourist beach in Ecuador

Six people, including a baby girl about two years old, were killed on Sunday in an armed attack near a tourist beach in southwestern Ecuador, police said. The shooting, carried out with rifles, also left three people wounded.

The incident took place in the coastal town of Puerto López, in the province of Manabí, a popular tourist destination known for whale watching. The attack occurred amid a surge of violence over the weekend that left at least nine people dead nationwide, according to local media reports.

“There are six fatalities and three injured,” Colonel William Acurio, the local police commander, told reporters on Sunday. He confirmed that one of the victims was a baby “approximately two years old.”

Authorities have not released further details about the motive behind the attack or whether arrests have been made.

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Man accused of killing nine in Paramaribo dies by suicide in police custody

The man who killed nine people, including five children, on Saturday night in Paramaribo died by suicide while in custody, Suriname police confirmed in a statement on Monday.

The suspect, identified by the initials D.A., 43, “hanged himself inside a holding cell at the Keizerstraat police station” in the capital, Paramaribo, according to the official report.

Police said the man sustained leg injuries during his arrest and was taken to a hospital before being transferred to the detention facility on Sunday night. Authorities did not provide further details on the circumstances surrounding his death.

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Winter storm disrupts holiday travel, forcing 1,500 flight cancellations in the U.S.

Airlines canceled around 1,500 flights across the United States during the peak Christmas travel season after warnings of a severe winter storm and forecasts of heavy snowfall in the Midwest and Northeast. An additional 5,900 flights were delayed due to adverse weather conditions.

More than 40 million Americans were under snowstorm warnings or weather advisories one day after Christmas. Meanwhile, another 30 million people faced flood or storm alerts in California, where an atmospheric river triggered intense rainfall.

New York City was bracing for up to 25 centimeters (10 inches) of snow overnight, which would mark its heaviest snowfall in four years. Cold weather was expected to persist through the weekend in the nation’s largest city. According to flight-tracking website FlightAware, airports in the New York area recorded about 850 flight cancellations.

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