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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

German president warns Iran war could spread and disrupt Strait of Hormuz

The president of Germany, Frank-Walter Steinmeier, warned Monday that the war involving Iran could expand and further disrupt shipping through the strategic Strait of Hormuz. He urged a swift end to hostilities between Iran, United States and Israel.

Speaking in Panama City during a joint appearance with Panamanian President José Raúl Mulino, Steinmeier said available information suggests Iran has significant capacity to disrupt maritime traffic through the key oil route.

“Iran has considerable potential to interfere with shipping through the Strait of Hormuz,” Steinmeier said through an interpreter. “We should therefore reach an end to the hostilities as soon as possible and call on all parties involved to make that happen.”

The remarks came during Steinmeier’s visit to Panama, the first by a German president to the Central American nation.

The German leader described the possibility of the conflict spreading as “very dangerous,” saying recent developments indicate that such a scenario cannot be ruled out.

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Over the weekend, U.S. President Donald Trump urged allied nations to help ensure safe passage for ships through the Strait of Hormuz after Iran moved to block the waterway in response to U.S. strikes. However, several allies—particularly in Europe—have shown little support for the proposal.

“Some are very enthusiastic, others are not, and some are countries we have helped for many years,” Trump told reporters at the White House. “We have protected them from terrible external threats, and they’re not that enthusiastic. And the level of enthusiasm is important to me.”

Meanwhile, Kaja Kallas, the European Union’s top diplomat, said the Strait of Hormuz falls “outside NATO’s scope” and stressed that “the war involving Iran is not Europe’s war.”

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International

Mexico security chief meets DEA director in Washington to boost anti-drug cooperation

Mexico’s Secretary of Security and Citizen Protection, Omar García Harfuch, met in Washington with the head of the U.S. Drug Enforcement Administration, Terrance Cole, to discuss cooperation in the fight against drug trafficking and illegal arms flows.

The Mexican official said Monday on social media that he attended the meeting in representation of the Mexican government’s Security Cabinet.

“In Washington, D.C., I represented the Security Cabinet to hold talks with DEA Director Terrance Cole on the importance of strengthening bilateral cooperation to combat drug trafficking, curb the flow of weapons into our country, and reduce violence in Mexico through significant arrests,” García Harfuch wrote.

He added that, following instructions from Mexican President Claudia Sheinbaum, the government will continue strengthening international cooperation on security matters.

For his part, Cole said the meeting focused on cross-border collaboration to tackle drug trafficking and to build safer communities on both sides of the border.

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The meeting comes as Mexico and the United States begin a new round of dialogue on economic and security issues.

Earlier Monday, President Claudia Sheinbaum said she will look for the “best moment” to meet with U.S. President Donald Trump, adding that maintaining a good relationship with Washington is a priority for her administration.

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International

Venezuela’s foreign minister accuses UN rights chief of “immoral bias”

Venezuelan Foreign Minister Yván Gil criticized the United Nations High Commissioner for Human Rights, Volker Türk, accusing him of having an “immoral bias” and acting as an “echo chamber for falsehoods” regarding the situation in Venezuela.

Gil’s remarks came after Türk stated that his office had not received an official list from Venezuelan authorities detailing the release of political prisoners, nor authorization to carry out visits related to the issue.

“The UN High Commissioner for Human Rights insists on a narrative biased against our country, repeating unfounded accusations while deliberately omitting the impact of unilateral coercive measures on the rights of the Venezuelan people,” Gil said in a message posted on his Telegram channel.

Without directly addressing the question of prisoner releases, the Venezuelan foreign minister also accused Türk of aligning with what he described as the “agenda of extremism in Venezuela.”

Gil added that, despite serious human rights violations occurring in other parts of the world, the UN official has chosen to maintain what he described as an “immoral bias” against Venezuela.

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The criticism is part of a broader dispute between the Venezuelan government and the UN human rights office over reports and investigations concerning the human rights situation in the country.

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