Difficult choice for business: Lula appoints finance and foreign ministers

In three weeks, Brazil's elected President Lula will take over from his predecessor Bolsonaro.

Difficult choice for business: Lula appoints finance and foreign ministers

In three weeks, Brazil's elected President Lula will take over from his predecessor Bolsonaro. Now he assigns ministries. The most important of the finances goes to a close confidante. The State Department to someone who was once a chief diplomat.

Before taking office on January 1, Brazilian President Luiz Inácio Lula da Silva has vacated key posts in his new government, including finance and foreign affairs ministries. The 59-year-old former mayor of São Paulo, Fernando Haddad, should become the new finance minister, Lula announced in Brasília. Haddad, a close associate of the left-leaning Lula, is viewed with skepticism in business circles over fears of excessive government spending.

According to Lula, 71-year-old Mauro Vieira, who was the country's chief diplomat and ambassador to several countries under President Dilma Rousseff (2015-2016), is to become foreign minister. The defense department is to be taken over by a civilian, the former head of the Court of Auditors, José Mucio Monteiro. Lula has announced Bahía Governor Rui Costa as his head of cabinet. The Ministry of Justice is to take over Flavio Dino. Other positions will be announced in the coming week.

The left-leaning Lula narrowly won the election at the end of October against the far-right incumbent Jair Bolsonaro. Four years earlier, former education minister Haddad had to step in as a presidential candidate for Lula, who had been jailed on charges of corruption. The son of Lebanese immigrants clearly lost to Bolsonaro at the time. Lula, who was previously President of Brazil, will take office on January 1st.

President-elect Lula has already won his first victory in parliament this week. The Senate voted to amend the constitution to allow extra spending to pay Social Security Minimums. A large majority of 64 of the 81 senators voted for the text of the law. Only 49 votes were needed.