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Lula, back in Brasilia, gets down to politics

Photo: Sergio Lima / AFP

| By AFP |

President-elect Luiz Inacio Lula da Silva met the leaders of both houses of Congress Wednesday, calling for “dialogue” in a divided Brazil as he sought support for his agenda after his inauguration on January 1.

The veteran leftist, who narrowly defeated far-right President Jair Bolsonaro in last month’s elections, is scrambling to secure support for his social spending plans ahead of his swearing-in, but is far short of a majority in Congress.

Making his return to the capital, Brasilia, the former president (2003-2010) kicked things off by meeting the speaker of the lower house, Arthur Lira, previously a Bolsonaro ally.

“The country needs dialogue and normality,” Lula posted on Twitter afterwards, along with a video of he and Lira shaking hands.

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He also met Senate president Rodrigo Pacheco.

Brazil was left torn by the October 30 runoff election, which brought a curtain down on four polarizing years under Bolsonaro — who lost by the slimmest margin in the country’s modern history.

Lula, 77, faces the task of healing the nation’s wounds — but also more pragmatic concerns for Latin America’s biggest economy.

That includes finding money for campaign promises such as a minimum-wage increase and continuing a beefed-up welfare program of 600 reais ($115) a month that was introduced by Bolsonaro but not funded in his 2023 budget.

Lula is racing to find the needed funding, with options such as passing a constitutional amendment allowing the government to break its spending cap next year.

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That would likely require support from Lira, who is from a loose coalition of parties known as the “Centrao,” a group known for striking alliances with whoever is in power — in exchange for government pork.

Vice President-elect Geraldo Alckmin, who is heading Lula’s transition team, said Tuesday the incoming administration was still evaluating other options, as well.

Lula also had meetings Wednesday with Supreme Court Chief Justice Rosa Weber and Superior Electoral Tribunal head Alexandre de Moraes.

Anticipation is meanwhile running high for his first cabinet appointments, especially from markets anxious over the key post of finance minister.

Alckmin named a four-member economic transition team Tuesday, with two market-friendly economists and two close to Lula’s Workers’ Party (PT).

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International

U.S. allows Venezuela to fund Maduro and Cilia Flores’ legal defense

Until now, the U.S. administration had blocked the Venezuelan government from covering the legal fees of Nicolás Maduro and his wife, Cilia Flores, who is also jailed and facing drug trafficking charges, due to international sanctions imposed on Venezuela.

The couple’s legal team had relied on that argument in an attempt to have the indictment dismissed, claiming that preventing a defendant from accessing counsel of their choice violates rights guaranteed under the Sixth Amendment of the U.S. Constitution.

However, the U.S. Treasury Department will now allow “defense attorneys to receive payments from the Government of Venezuela under certain conditions,” New York prosecutor Jay Clayton wrote in a letter dated Friday to Judge Alvin Hellerstein, who is overseeing the case.

According to the letter, the funds must have become available after March 5, 2026, and cannot come from Venezuelan oil sales regulated in the United States.

Since Maduro’s removal from power in early January, former Vice President Delcy Rodríguez has served as Venezuela’s interim leader.

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The United States effectively controls Venezuelan crude exports, with revenues deposited into special accounts supervised by Washington.

Court documents filed on Friday show that the defense acknowledged the sanctions exemption and, for now, withdrew its motion seeking dismissal of the charges.

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International

U.S. Sanctions Network Linked to Fentanyl Trafficking Across India, Guatemala and Mexico

The United States Department of State announced sanctions on Thursday against 23 individuals and companies allegedly linked to an international fentanyl production and smuggling network operating in India, Guatemala and Mexico.

According to the State Department, the network supplied precursor chemicals to the Sinaloa Cartel, which the United States has designated as a Foreign Terrorist Organization.

Washington declared fentanyl, a powerful synthetic opioid, a weapon of mass destruction last year due to its role in the ongoing overdose crisis in the United States.

“By targeting the entire supply chain — from chemical suppliers in Asia to logistical intermediaries in Central America and cartel-linked networks in Mexico — the Trump Administration is dismantling networks that destabilize governance across our hemisphere and threaten U.S. security,” the State Department said.

In a separate statement, the Office of Foreign Assets Control detailed sanctions against three Indian chemical and pharmaceutical companies: Sutaria, Agrat and SR Chemicals, along with a sales executive accused of supplying precursor chemicals to contacts in Guatemala and Mexico.

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In Guatemala, authorities sanctioned J and C Import and Central Logística de Servicios, as well as intermediary Jaime Augusto Barrientos.

The OFAC also designated several intermediaries and import companies operating in the Mexican state of Sinaloa.

As part of the investigation, U.S. authorities identified Ramiro Baltazar Félix as a member of Los Mayos, a faction of the Sinaloa Cartel, and Alejandro Reynoso, accused of operating clandestine drug laboratories in Guadalajara.

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International

Pope Leo XIV Says Countries Have Border Rights but Migrants Deserve Respect

Pope Leo XIV said Thursday that migrants must be treated with dignity as he addressed the global migration crisis during a press conference aboard the plane returning from his tour of Africa.

The pontiff answered questions from journalists regarding his upcoming trip to Spain, which will include a visit to the Canary Islands, a region heavily affected by migration flows and growing political polarization surrounding the issue.

“Obviously, migration is a very complex issue and affects many countries — not only Spain, not only Europe, but also the United States. It is a global phenomenon,” the pope said.

Pope Leo XIV also questioned the role of developed nations in addressing the crisis.

“My response begins with a question: What is the Global North doing to help the Global South and those countries where young people no longer see a future and dream of going north, even when the North sometimes has no answers to offer?” he asked.

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While acknowledging that “a state has the right to establish rules for its borders,” the pope insisted that the debate must go beyond border control and address the structural causes that force people to leave their home countries.

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