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Brazil’s Lula appoints former mayor as finance minister

Photo: NELSON ALMEIDA / AFP

| By AFP |

Brazil’s president-elect Luiz Inacio Lula da Silva on Friday named former Sao Paulo mayor Fernando Haddad, viewed unfavorably by many in the business community, as his finance minister.

Lula da Silva, who narrowly defeated incumbent Jair Bolsonaro in October elections, unveiled ministers in the key posts of foreign affairs, justice, defense, and chief of staff.

However, all eyes were on his pick for finance minister, with markets nervous over the incoming government’s commitment to fiscal discipline and the inflation-hit economy in fragile recovery.

“(I chose) comrade Fernando Haddad as Minister of Finance,” Lula said during a press conference in the capital Brasilia.

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Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes, an ally of far-right President Jair Bolsonaro.

After Lula’s new government takes office following his January 1 inauguration, the economy ministry will be dissolved and transformed into finance, industry and planning agencies.

When Haddad’s name started circulating for the role, markets reacted with unease, viewing him as too much on the left and fearing he would jeopardize the budgetary balance.

“He represents the heterodox economic policy” that Lula’s Workers’ Party (PT) defends, said Antonio Madeira of the MCM consultancy firm.

Madeira said that with Haddad in the finance ministry, he expects “an increase in spending” and “a more assertive state giving a significant role to public companies.”

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Despite some of the reluctance towards Haddad, the Sao Paulo Stock Exchange’s Ibovespa index was up Friday by 0.5% after the names of the future ministers were announced.

Lula also tapped Mauro Vieira as foreign minister. 

Vieira is a 71-year-old career diplomat who has already served as foreign minister as well as ambassador to Argentina, the United States and the United Nations.

He is currently serving as ambassador to Croatia, which on Friday knocked Brazil out of the World Cup.

For the justice ministry, Lula appointed Flavio Dino, a former governor of the northeastern state of Maranhao.

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Rui Costa, governor of the province of Bahia, was named to a ministry that falls between the roles of prime minister and chief of staff.

Jose Mucio Monteiro, a civilian, was named defense minister.

After appointing five white men to the key ministries, Lula promised that “in time, you will see more women than men here … as well as a number of Afro-Brazilians.”

“We will try and form a government in the image of Brazilian society.”

Lula, a former unionist who already served two terms as president between 2003 and 2010, said that he would announce the names of more ministers next week and he has “not yet decided the total number of ministers” he would have in his government.

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One of the most highly anticipated posts is that of the environmental minister, who will play a crucial role as Brazil seeks to tackle deforestation in the Amazon.

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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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