💰 Debt deal drama

More beef between states and the federal government. How to avoid a new dengue debacle. And we remember a key moment of Brazil's return to democracy

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Gustavo Ribeiro & Isabela Cruz
January 15, 2025 • Reading Time: 3 minutes

Good morning! With COP30 10 months away, Brazil is behind schedule and has yet to appoint a president to oversee the climate change conference. Lula will meet with cabinet ministers today to discuss the matter. Among the likely candidates are André Corrêa do Lago, the Foreign Affairs Ministry’s climate secretary, Ana Toni, the climate change secretary at the Environment Ministry, and Vice President Geraldo Alckmin. 

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State debt bill a new point of contention

Governor Eduardo Leite, pictured with President Luiz Inácio Lula da Silva, criticized the president's vetoes of provisions in a debt relief program, saying they cause "unacceptable harm" to his state of Rio Grande do Sul. Photo: Mauricio Tonetto/Secom-RS

Governor Eduardo Leite, pictured with President Lula, criticized the president's vetoes of provisions in a debt relief program, saying they cause "unacceptable harm" to his state of Rio Grande do Sul. Photo: Mauricio Tonetto/Secom-RS

President Luiz Inácio Lula da Silva signed a bill this week establishing Propag, a debt relief program for state governments. While Lula preserved a provision allowing states to offload deficit-ridden state-owned companies onto the federal government, he vetoed several key measures — drawing ire from governors of heavily indebted states.

Driving the news. Governors took exception with two vetoes, in particular: 

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