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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

Venezuela Earthquakes Spark Diplomatic Thaw With Former Critics

The devastating earthquakes that struck Venezuela have triggered an unprecedented diplomatic thaw between Caracas and several governments that had maintained strained relations with the country, raising hopes that the humanitarian response could pave the way for broader international engagement under the administration of U.S. President Donald Trump.

The United States, Chile, Argentina, El Salvador and Israel were among the first countries to announce humanitarian assistance, deploy search-and-rescue teams or establish direct contact with acting President Delcy Rodríguez to coordinate relief efforts in the hardest-hit areas.

Canada also joined the international response by announcing humanitarian aid while opening a domestic debate over the importance of maintaining diplomatic representation in countries such as Venezuela to better respond to emergencies and assist its citizens abroad.

The wave of international cooperation marks a sharp contrast to the diplomatic tensions that followed Venezuela’s disputed presidential election on July 28, 2024, in which Nicolás Maduro was declared the winner.

In the aftermath of that vote, the governments of Argentina, Chile, Costa Rica, Panama, Peru, the Dominican Republic and Uruguay publicly questioned the official election results, triggering one of the region’s most significant diplomatic crises in recent years.

The Venezuelan government responded by withdrawing its diplomatic personnel from several of those countries and demanding the departure of their representatives, further deepening the country’s international isolation.

The humanitarian emergency created by the twin earthquakes has now prompted renewed communication between Caracas and governments that had previously suspended or significantly reduced diplomatic engagement, underscoring how major natural disasters can temporarily reshape international relations despite longstanding political disagreements.

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International

Venezuela Earthquake Death Toll Surpasses 1,700 as Search for Survivors Continues

Venezuelan authorities have raised the death toll from last week’s twin earthquakes to more than 1,700, as rescue teams continue searching for survivors in the country’s hardest-hit coastal region.

According to the latest official report released on Sunday, the powerful earthquakes, measuring magnitudes 7.2 and 7.5, have claimed at least 1,719 lives. National Assembly President Jorge Rodríguez also reported that 5,034 people were injured, while 15,866 have been displaced and another 22,619 are receiving medical care.

The United Nations has expressed growing concern over the scale of the disaster, estimating that as many as 68,000 people could still be missing.

La Guaira bears the brunt of the disaster

The coastal state of La Guaira has suffered the greatest loss of life and the most extensive damage. The Venezuelan government has declared the area a disaster zone and placed it under military control as emergency operations continue.

Five days after the earthquakes struck, search-and-rescue teams remain on the ground, supported by additional heavy equipment and international rescue crews. However, hopes of finding more survivors beneath the rubble continue to diminish with each passing day.

One of the most dramatic rescue operations unfolded Monday in Catia La Mar, where emergency teams from El Salvador, Mexico, and Venezuela worked together to reach a 21-year-old man who has remained trapped inside a collapsed building since the earthquakes struck.

The twin earthquakes hit Venezuela on June 24, with the epicenter located between San Felipe and Yumare in the country’s northern region. The first quake, measuring magnitude 7.2, struck at 6:04 p.m. local time. Just 39 seconds later, a second and stronger magnitude 7.5 earthquake occurred farther to the southeast. Combined, the seismic activity lasted nearly three minutes, causing widespread devastation across several regions of the country.

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International

Looting Spreads in Venezuela’s Hardest-Hit Areas After Deadly Earthquakes

Not even the wires were left behind at a small grocery store. Before the ground had even stopped shaking, looting and theft began in the areas hardest hit by the double earthquake that struck Venezuela.

Reports of robberies have multiplied in the coastal state of La Guaira, located near Caracas and now transformed into a landscape of collapsed buildings and debris.

Videos circulating on social media show groups of people removing boxes of household appliances from a damaged store. Other images show similar boxes being carried on top of vehicles and motorcycles.

Social media platforms have also been filled with accusations against police officers and military personnel who allegedly stole from homes and even from victims who died during the disaster.

A branch of a major pharmacy chain was looted, along with supermarkets and other businesses. Some residents have described the situation as “disaster tourism,” while others say the looting reflects hunger and desperation among people who lost everything in a country already facing a prolonged economic crisis.

“Is it fair that our own people turn against our own people?” said María Esther Bernal, 71, who rented commercial spaces to Chinese merchants, all of which were looted. “They left nothing behind, not even the wallpaper. They even took the cables,” she said.

“Next door, a man died. He was Chinese. People walked over his body while they looted the place. It was a supermarket,” she added.

An AFP journalist witnessed looting in La Guaira since Thursday, following the earthquakes.

Jenifer Mayora, 34, defended some of the actions, saying that “the things people took were because the owners of the stores allowed us to take them.”

However, she criticized the limited response from authorities. “I have been waiting for a mattress so my children can sleep,” she said.

Residents have expressed anger over what they describe as a slow and insufficient response from authorities after the double earthquake, which has left around 1,450 people dead and tens of thousands missing.

Communities are demanding not only faster rescue operations in La Guaira, but also stronger security measures and urgent assistance with food, water, and medicine.

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