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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

Senate Bipartisan Vote Moves Measure to Block Further U.S. Military Action in Venezuela

The U.S. Senate took a significant step on Thursday toward limiting President Donald Trump’s military authority in Venezuela, advancing a bipartisan war powers resolution that would block further military actions without explicit congressional approval, lawmakers said.

In a 52-47 procedural vote, the measure moved forward after five Republican senators joined all Democrats in supporting the effort. The resolution aims to require presidential authorization from Congress before the United States can engage in any new hostilities against Venezuela, a rare rebuke of Trump from both sides of the aisle following the controversial military operation that resulted in the capture of Venezuelan leader Nicolás Maduro.

If ultimately passed, the legislation would obligate the administration to withdraw U.S. forces from any imminent hostilities in or against Venezuela unless Congress explicitly authorizes such actions. However, the measure’s future remains uncertain as it heads next to the House of Representatives, where a Republican majority is less likely to approve it, and any final version would likely face a presidential veto. Overriding a veto would require a two-thirds majority in both chambers, a high threshold in the current political landscape.

President Trump has sharply criticized Republican senators who broke ranks to support the resolution, saying they should not be re-elected and arguing that the measure undermines his authority to act in national defense. Nevertheless, the vote signals growing bipartisan concern in Congress about unchecked executive military action in the absence of legislative authorization.

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International

Petro and Trump Agree on Joint Action Against ELN Guerrillas After Tense Diplomacy

Colombian President Gustavo Petro and his U.S. counterpart Donald Trump agreed on “joint actions” to combat the National Liberation Army (ELN) guerrilla group operating along the Colombia–Venezuela border, Colombia’s Interior Minister Armando Benedetti said on Thursday.

The announcement came after a period of heightened diplomatic tension triggered by recent U.S. airstrikes in Venezuela, the capture of Venezuelan President Nicolás Maduro, and threats of possible U.S. military action in Colombia. The phone call Wednesday evening was the first direct conversation between Petro and Trump since both leaders took office, and it helped ease the strained relationship.

During the call, both presidents committed to carry out joint efforts against the ELN, a guerrilla group that has repeatedly attacked Colombian security forces and is accused of kidnapping soldiers. In December, the ELN declared a “armed strike,” confining civilians in areas under its control in response to perceived threats of U.S. intervention.

According to Benedetti, Petro welcomed Trump’s invitation to meet in Washington and asked for U.S. support to “strike hard” against ELN positions along the porous border with Venezuela, where guerrillas often flee after clashes with Colombian forces.

The border region is a longstanding flashpoint, where armed groups, drug traffickers and illegal mining networks compete for control. Previous attempts by Petro’s government to negotiate peace with the ELN have stalled after a major offensive in Catatumbo that left hundreds dead and displaced thousands.

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Lula Vetoes Bill That Would Have Shortened Bolsonaro’s Prison Sentence

Brazilian President Luiz Inácio Lula da Silva vetoed on Thursday a bill that would have significantly reduced the prison sentence of his far-right predecessor, Jair Bolsonaro, who is currently serving time for attempting a coup d’état.

Despite the veto, the conservative-majority Congress retains the power to override the decision through a vote.

In September, following a landmark trial, Brazil’s Supreme Court sentenced Bolsonaro to 27 years in prison after finding him guilty of conspiring to remain in power in an “authoritarian” manner following his defeat to Lula in the 2022 presidential election.

The 70-year-old former president has been incarcerated in a Brasília prison since late November. Earlier this month, the Supreme Court rejected a request for house arrest on health grounds.

Under the current legal framework, Bolsonaro would be required to serve approximately eight years before becoming eligible for sentence leniency. However, a bill passed by Congress in December could have reduced that period to just over two years, prompting Lula’s veto.

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