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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.

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“(I chose) comrade Fernando Haddad as Minister of Finance,” Lula said during a press conference in the capital Brasilia.

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.

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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.”

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.

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For the justice ministry, Lula appointed Flavio Dino, a former governor of the northeastern state of Maranhao.

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.”

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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.

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.

International

Stoltenberg calls on the NATO bloc to “urgently” offer anti-aircraft systems to Ukraine

NATO Secretary General Jens Stoltenberg called on the member states of the bloc to offer Ukraine anti-aircraft defense systems or financial support and lamented that “every delay costs lives and damage” in the face of the Russian invasion.

“We are working with all our allies and asking them to provide air defense systems such as the Samp/T or others,” he assured the media upon his arrival at the summit of foreign ministers of the G7 on the Italian island of Capri (south), when asked if other countries, in addition to Germany, could offer ‘Patriots’ to Kiev.

Stoltenberg encouraged the bloc’s allies who cannot provide anti-aircraft systems to the Ukrainian resistance to give it financial support.

In this sense, he stressed that the Netherlands has confirmed a package of 4 billion euros in additional military aid for Kiev, while Denmark has announced a new remittance.

And he celebrated as “an encouraging sign” Washington’s decision, after months of delays, to discuss the approval of other funds for $61 billion, with the commitment of US President Joe Biden to ratify it immediately.

NATO, he said, has given 99% of the aid to Ukraine but if it stops doing so “they will not be able to defend the country.”

“That’s why we have to do more and that’s why we’re here,” said the leader of the Atlantic Alliance, who will meet tomorrow with the Ukrainian president, Volodymir Zelenski.

In his opinion, accelerating aid to Ukraine is “urgent” because “every day delays cost deaths and damage” in that country in the face of a Russia that puts pressure on the defensive lines.

Stoltenberg finally promised “maximum surveillance” in NATO countries against Russian espionage, after the recent arrest in Germany of two men on suspicion of espionage under the orders of Moscow.

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International

The US announces new sanctions against Iran for the attack on Israel

U.S. President Joe Biden announced new sanctions against Iran, directed against its Revolutionary Guard and the Ministry of Defense, for the attack on Israel.

Through a statement signed by the spokesman of the State Department, Matthew Miller, the US Government explained that it is also targeting the unmanned aerial vehicle program, the steel industry and the automobile companies of Iran.

“In response to Iran’s unprecedented attack on Israel, the United States is taking radical measures against several actors involved in Iran’s unmanned aerial vehicle program, suppliers and customers of one of Iran’s largest steel producers and Iranian automotive companies with connections to the United States,” the statement said.

The designated entities are the Islamic Revolutionary Guard Corps (IRGC) and the Ministry of Defense and Logistics of the Armed Forces (MODAFL).

In total, the Treasury Department imposes sanctions on 16 people and two entities that allow the production and testing of Iranian unmanned aerial vehicles, as well as the proliferation of actors working on behalf of the Islamic Revolutionary Guard, its unmanned aerial production division, Kimia Part Sivan Company, and other Iranian manufacturers of unmanned aerial vehicles and unmanned aerial vehicle engines.

The Treasury also sanctions five companies that supply component materials for steel production to the Khuzestan Steel Company (KSC) of Iran, an entity sanctioned by the United States, or that buy finished steel products from the KSC.

In addition, the Treasury sanctions the Iranian car manufacturer Bahman Group and three of its subsidiaries, which have continued to materially support the IRGC and other sanctioned entities.

Finally, the Department of Commerce imposes new controls to restrict Iran’s access to technologies such as basic commercial-grade microelectronics.

“We will continue to work with our allies and partners to use the full range of tools at our disposal to address income flows and disrupt the networks that support Iran’s reckless proliferation of weapons that destabilize the Middle East and beyond,” Miller said.

U.S. Treasury Secretary Janet Yellen said last Tuesday that the United States and its partners were coordinating a new round of sanctions against Iran for the attack on Israel, the first launched by Tehran directly against Israeli territory.

Several countries had previously designated the Revolutionary Guard, a branch of the Armed Forces of Iran created after the Islamic Revolution of 1979, as a terrorist group.

In 2019, the United States included the Revolutionary Guard on the blacklist of terrorist groups, while the Government of Canada already said in January of this year that it was studying ways to include the Revolutionary Guard on its list of terrorist organizations.

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Argentina asks to be a “global partner” of NATO

Argentina requested to be a “global partner” of NATO in the framework of a meeting held this Thursday by its Minister of Defense, Luis Petri, and the deputy secretary general of the multilateral organization, Mircea Geoana, official sources reported.

As published by the holder of the portfolio on social network X and disseminated his ministry, Petri presented “the letter of intent that expresses Argentina’s request to become a global partner of this organization.”

“We will continue to work on recovering links that allow us to modernize and train our forces to the NATO standard,” concluded the Argentine Minister of Defense.

Petri accompanied his publication with several photographs – including that of the delivery of the official letter – of his meeting with Geoana in Brussels, where the headquarters of the North Atlantic Treaty Organization (NATO) is located.

Argentina’s rapprochement with NATO is linked to the new foreign policy developed by the Government of the ultraliberal Javier Milei, which has as references the United States and Israel.

In addition to the recent visit to Argentina of the commander of the Southern Command of the United States, Army General Laura Richardson, with a vocation to expand collaboration in defense, the South American country is clearly aligned with Israel both in the war in the Gaza Strip against the armed wing of Hamas and in the recent crisis unleashed with Iran.

Petri is this week in Europe, where on Monday he signed an agreement for the purchase of 24 used F-16 fighter planes from the Danish Army.

Milei was going to travel to Denmark to meet with the Prime Minister, Mette Frederiksen, and celebrate the signing of the agreement, but suspended the visit following Iran’s attack on Israel and returned from the United States – where he had traveled to receive a tribute from a Jewish organization – to organize a “crisis committee” in Buenos Aires.

Argentina keeps in its memory the memory of two serious attacks against the interests of the Jewish community: in 1992 against the Embassy of Israel; and in 1994 against the Asociación Mutual Israelita Argentina (AMIA). Both left more than 100 dead and hundreds of injured.

As its official website shows, NATO has 32 full members. Born after World War II (1939-1945), twelve countries signed their accession in 1949: Belgium, Canada, Denmark, the United States, France, Iceland, Italy, Luxembourg, Norway, the Netherlands, Portugal and the United Kingdom.

They were joined, in various expansions, Greece, Turkey, Germany, Spain, Czech Republic, Hungary, Poland, Bulgaria, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Romania, Albania, Croatia, Montenegro, North Macedonia, Finland and Sweden – the last two incorporations, in 2023 and 2024, respectively, against the background of the war between Russia and Ukraine.

In addition, it has several allies qualified as global partners, the same status that Argentina now intends: Australia, Afghanistan, Iraq, Japan, South Korea, Mongolia, New Zealand, Pakistan and Colombia, the only country in Latin America, admitted in 2017.

Undoubtedly, an important aspect that could generate some internal conflict is the diplomatic dispute over the sovereignty of the Falkland Islands between the United Kingdom – one of the founding members of NATO – and Argentina, which caused a war in 1982.

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