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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

Germany says football bodies alone will decide on possible World Cup boycott

The German Football Association (DFB) and FIFA will decide with full “autonomy” whether to boycott the upcoming World Cup, which will be hosted mainly by the United States in six months, following threats made by former U.S. president Donald Trump, the German government told AFP on Tuesday.

Trump has threatened to seize Greenland and impose higher tariffs on European countries that oppose the plan, raising political tensions between the United States and Europe.

“This assessment therefore lies with the relevant federations, in this case the DFB and FIFA. The federal government will respect that decision,” Sports State Secretary Christiane Schenderlein said in a statement emailed to AFP.

AFP had asked the German government about the possibility of a boycott of the World Cup to be jointly hosted by Canada, the United States and Mexico from June 11 to July 19.

“The federal government respects the autonomy of sport. Decisions regarding participation in major sporting events or possible boycotts fall exclusively within the responsibility of the relevant sports federations, not the political sphere,” said Schenderlein, a member of the conservative CDU, the party of Chancellor Friedrich Merz.

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Daily Mail publisher insists reports relied on legitimate sources amid privacy trial

Two British tabloids accused of phone hacking and other forms of “unlawful information gathering” against Prince Harry and six other individuals, including singer Elton John, insisted on Tuesday that their reporting relied on legitimate sources.

Associated Newspapers Ltd (ANL), the publisher of the Daily Mail and The Mail on Sunday, sought to rebut allegations of privacy violations through illegal methods on the second day of trial at London’s High Court, following a lawsuit filed by the seven claimants.

Prince Harry, 41, who attended court hearings on both Monday and Tuesday, could be called to testify starting Wednesday in a trial expected to last up to nine weeks.

Lawyers for the claimants said the alleged illegal activities took place between 1993 and 2011, with some incidents reportedly extending as late as 2018. They argue that the tabloids hired private investigators to intercept phone calls and obtain confidential information, including detailed phone records, medical histories, and bank statements.

However, Anthony White, counsel for ANL, told the court that the trial would show the company presents “a compelling account of a pattern of lawful source acquisition” for its articles.

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White added that the claims would require the court to believe that journalists and staff at the tabloids had engaged in widespread dishonesty, which the company strongly denies.

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Death toll from southern Spain train crash rises to 40

The death toll from the train accident that occurred on Sunday in southern Spain has risen to 40, according to investigative sources cited by EFE on Monday afternoon.

Since early Monday, search operations have focused on the damaged carriages of a Renfe train bound for Huelva, which collided with the last derailed cars of an Iryo train traveling from Málaga to Madrid after it left the tracks.

The crash has also left more than 150 people injured. Of these, 41 remain hospitalized, including 12 in intensive care units at hospitals across the Andalusia region.

More than 220 Civil Guard officers are working at the site, searching the railway line and surrounding areas for key evidence to help identify victims and determine the causes of the accident.

The tragedy has revived memories of the deadliest railway disasters in Europe in recent decades. In Spain, the most severe occurred on July 24, 2013, when an Alvia train derailed near Santiago de Compostela, killing 80 people and injuring 130 others.

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At the European level, the worst rail disaster took place on June 3, 1998, in Eschede, northern Germany, when a high-speed train struck a bridge pillar at 200 kilometers per hour, resulting in 98 deaths and 120 injuries.

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