Good morning! In today’s issue: Germany pulls out of the Amazon Fund. Argentina held its primary elections yesterday, and the results are set to stoke volatility in South American markets. Spending on infrastructure reaches the lowest in three years.
Germany to cut funds for Amazon preservation
In a move that reflects “great concerns with increasing deforestation in the Brazilian Amazon,” the German government decided to freeze USD 39m in funds to finance projects aimed at protecting the Amazon rainforest. The decision reportedly concerns only funds destined to projects by the Environment Ministry. President Jair Bolsonaro shrugged when asked to comment on it, saying that “Brazil doesn’t need other people to protect the Amazon.”
Why it matters. International pressure on environmental issues has been mounting. Allies of the government, however, have dismissed it as a reaction to the recent Mercosur-EU deal, saying that lobbies against Brazil’s agriculture are forcing the narrative to justify protectionist measures. Mr. Bolsonaro also said that international funds to protect the Amazon are part of an international plot to seize control over the rainforest. “[Germany] will no longer buy the Amazon in installments. They can enjoy that money. Brazil doesn’t need it,” said the president.
Throwback. The...