Good morning! This issue: The risks in Venezuela for Brazil. Economy Minister’s quest against tax breaks. Auctioning Avianca airlines assets.
The risks in Venezuela for Brazil
For the past few days, Venezuela has been engulfed by even more turmoil and uncertainty—as forces opposing President Nicolás Maduro staged a botched coup and Venezuela saw waves of violent protests (which have already claimed 5 lives). With the opposition calling for a general strike next week, Brazil’s northern neighbor seems to be edging closer than ever to a civil war. Which could have severe consequences for Brazil.
Border. First, the inflow of migrants would dramatically enhance—with great impact on Roraima, Brazil’s northernmost state. Authorities say that Venezuelan families already account for 10% of beneficiaries of cash transfer program Bolsa Família in that state. Not to mention the potential strengthening of criminal organizations—which could enhance drug trafficking between the two countries.
Economy. An armed conflict in South America should also hamper investments across the region, adding to an already existing perception of instability.
Trade. Venezuela could become this generation’s proxy war—with Russia and China backing Mr. Maduro, and the U.S. in the...