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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

Wildfires in France Burn Nearly Three Times More Land Than in 2025, Interior Minister Says

More than 50,000 hectares of land have been destroyed by wildfires across France since the beginning of the year, nearly three times the area affected during the same period in 2025, French Interior Minister Laurent Nuñez said Friday in an interview with AFP.

Emergency crews are currently battling several major fires, including one near the popular Cap Ferret peninsula, where flames have already consumed more than 10,000 hectares, making it the largest wildfire of the season so far, according to the minister.

“Currently, we have 32 fires underway, which obviously do not all have the same level of importance,” Nuñez said.

“We have exceeded the threshold of 50,000 hectares burned since January 1 of this year. It is practically three times more than during the same period last year,” he added.

Despite the extensive resources deployed and the long hours worked by emergency teams — estimated to be two and a half times higher than last year — Nuñez said authorities remain “calm” and “determined” to contain the situation.

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The minister acknowledged that the main concern is the fatigue affecting firefighters and emergency personnel who have been working under demanding conditions.

“The concern, if there has to be one, obviously lies in the state of exhaustion of the men and women who are committed. We have to hold on throughout the entire season,” Nuñez said.

France’s late spring and early summer have been marked by repeated periods of extreme heat, conditions linked by scientists to climate change and considered a major factor contributing to the increase in wildfire activity across the country.

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International

Israel Says Saudi Recognition Would Mark ‘Historic Breakthrough’ for Middle East Peace

The office of Israeli Prime Minister Benjamin Netanyahu said Thursday that Saudi Arabia’s recognition of Israel would represent a “historic breakthrough” toward achieving peace in the Middle East.

The statement came after the United States and Saudi Arabia announced an agreement on Wednesday to establish a civil nuclear program in the kingdom. U.S. President Donald Trump said the initiative would be linked to Riyadh’s decision to normalize diplomatic relations with Israel.

“Saudi Arabia joining the Abraham Accords would represent a historic breakthrough toward peace in the Middle East,” Netanyahu’s office said following Trump’s announcement.

The statement added that recent developments, including joint military actions by the United States and Israel against Iran, as well as Israel’s efforts against what it described as Iran’s “terror axis,” have created new opportunities to expand regional diplomatic ties.

“The joint U.S.-Israeli military action against the genocidal regime in Tehran and Israel’s defeat of Iran’s terror axis have created the possibility of expanding the circle of peace,” the statement said.

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A potential normalization agreement between Israel and Saudi Arabia would represent a major diplomatic shift in the region, as Riyadh has long been viewed as one of the key countries whose formal recognition could significantly reshape Middle Eastern relations.

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International

Nicolás Maduro’s Son Calls U.S. Trial Against His Father and Cilia Flores “Unjust”

Venezuelan lawmaker Nicolás Maduro Guerra on Wednesday described as “unjust” the legal proceedings in the United States against his father, ousted Venezuelan President Nicolás Maduro, and his wife, Cilia Flores, following their capture in Caracas on January 3 by U.S. forces.

“Faced with the unjust trial taking place today, the people raised their voices with a single demand: We demand the immediate release of President Nicolás Maduro and the First Lady,” Maduro Guerra wrote on his Instagram account.

The lawmaker attended a rally in Caracas where supporters of the ruling United Socialist Party of Venezuela (PSUV)gathered to show support for the former president, who faces charges in the United States including conspiracy to commit narco-terrorism and cocaine importation. Flores is accused of crimes related to drug trafficking and weapons possession.

The event was also attended by PSUV Vice President for Mobilizations and Events Nahum Fernández and Caracas Mayor Carmen Meléndez, according to photos shared by Maduro’s son.

The third hearing in the case against Maduro and Flores concluded Wednesday at a federal court in New York after lasting only about 18 minutes. During the hearing, the judge preliminarily set June 2027 as the expected start date for the trial.

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One of the main arguments from the defense will focus on immunity. Maduro’s lead attorney, Barry Pollack, who has also represented WikiLeaks founder Julian Assange, said the defense plans to request immunity for both defendants, arguing that Maduro was serving as head of state and Flores as first lady at the time of their detention.

Both Maduro and Flores pleaded not guilty during their first court appearance in New York on January 5.

Meanwhile, Venezuela’s interim president Delcy Rodríguez, who assumed power after Maduro’s capture, has not yet commented on Wednesday’s hearing in the United States.

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