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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

Truck bomb attack near police station in Colombia leaves 14 injured ahead of presidential inauguration

A truck loaded with explosives exploded on Saturday near a police station in the Colombian city of Cúcuta, close to the Venezuelan border, leaving 14 people injured in an attack that occurred six days before president-elect Abelardo de la Espriella’s inauguration.

The blast took place in the early hours of the morning and was allegedly carried out by members of the National Liberation Army (ELN), who detonated a vehicle packed with explosives. According to the latest report from the Colombian Army, the attack injured 11 police officers and three civilians.

The explosion involved around 15 explosive devices, and two of the wounded officers are in critical condition and “fighting for their lives,” said William Villamizar, governor of Norte de Santander, the region where the attack occurred.

The incident comes amid Colombia’s worst wave of violence in the past decade, with armed groups expanding their presence in several areas of the country.

“I strongly condemn the cowardly terrorist attack carried out in Cúcuta against our National Police. Terrorism will not intimidate Colombia or break the determination of Colombians to live in peace and security,” De la Espriella said in a post on X.

The conservative lawyer, who has been described as a far-right figure, will take office on August 7, replacing Gustavo Petro, Colombia’s first left-wing president. The inauguration ceremony will be held in Cali, the country’s third-largest city and a frequent target of attacks by armed groups.

The United Nations condemned what it described as an “indiscriminate attack” that caused not only injuries but also “fear and distress among the population.”

De la Espriella has repeatedly warned about an alleged plot against his life. Meanwhile, President Gustavo Petro, who is currently visiting Cuba, has not commented on the attack. During his visit, Petro met with Cuban President Miguel Díaz-Canel to discuss what Havana describes as the United States’ “policy of suffocation” toward the island.

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International

EU Faces Migration Crisis After 60,000 Migrants Arrive in Spain’s Ceuta Enclave

The arrival of around 60,000 migrants from Morocco to Spain’s Ceuta enclave triggered a major European Union crisis on Friday, after Madrid described the situation as an “attack” on its territorial integrity.

At least 34 people died while attempting to reach the Spanish territory, according to local authorities.

Hundreds of migrants had begun arriving in Ceuta earlier in the week, either by swimming across the border or climbing security fences. Most of those who entered were young men and teenagers.

However, the situation escalated dramatically early Thursday morning, when the number of arrivals surged within a few hours, reaching nearly 60,000 people. According to the Spanish government, the vast majority of them — around 48,000 migrants — had returned to Morocco by Friday evening.

The episode represents one of the most serious migration crises faced by the autonomous city of Ceuta, which has a population of around 84,000 residents, in recent years.

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Several European countries responded strongly to the crisis, with Italy announcing the temporary suspension of the Schengen free movement agreement with Spain, a measure supported by Finland and Denmark.

“The temporary suspension of Schengen with Spain is a necessary decision to protect the security of our citizens and defend Europe’s borders,” Italian Foreign Minister Antonio Tajani said in a post on X.

Italy’s Interior Ministry confirmed that the country had tightened controls on maritime and air entry points from Spain, but clarified that the measure would not affect Spanish or European citizens traveling to Italy.

The additional checks will specifically target non-European citizens arriving from Spain, according to the ministry.

The measure will remain in effect for one month starting Saturday, authorities said.

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Spain’s Foreign Minister José Manuel Albares responded to the Italian announcement through a statement on X, as European governments continued discussions over the consequences of the migration crisis.

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International

Chuck Schumer Unveils Proposal to Strengthen Oversight of the U.S. Presidency

U.S. Senate Democratic Leader Chuck Schumer on Thursday announced legislation to establish a federal anti-corruption office aimed at strengthening oversight of the executive branch and preventing future presidents from using the White House for personal financial gain.

Schumer said the proposal was prompted by what he described as President Donald Trump’s misuse of the presidencyto benefit his family’s business interests.

“In just 18 months, the Trump family has made more than $4 billion by exploiting the influence of the presidency,” Schumer alleged.

The New York senator also argued that the alleged corruption has had direct economic consequences for American households.

“The same corrupt practices Trump is using to pocket billions of dollars are also forcing Americans to pay, on average, $3,100 more each year because of the rising cost of living,” he said.

The legislation was introduced alongside Democratic Senators Alex Padilla, Jeff Merkley, and Andy Kim.

According to Schumer, the bill has two primary objectives: “First, to return money to the American people. Second, to ensure that no one can ever steal from them again.”

He added that the proposal would create legal mechanisms allowing citizens to seek the recovery of funds allegedly obtained through government corruption.

“The fact that Trump stole money from the American people does not make it his. Americans deserve to get that money back,” Schumer said.

Under the proposed legislation, any U.S. citizen—as well as state attorneys general acting on behalf of their residents—would be authorized to file civil lawsuits to recover funds allegedly acquired through corrupt practices by public officials.

“Our bill would empower any individual, including a state attorney general acting on behalf of the people of that state, to bring legal action to recover money stolen from the public through government corruption,” Schumer said.

The measure is expected to face debate in Congress, where Republicans and Democrats remain deeply divided over executive accountability and the scope of presidential powers.

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