Peña says the Milei-Lula crisis has not affected how Mercosur functions

Paraguayan President Santiago Peña stated on Friday that the ongoing diplomatic crisis between Argentine President Javier Milei and Brazilian President Luiz Inácio Lula da Silva has not impacted Mercosur's functioning. In an interview with Paraguayan channel Unicanal, Peña emphasized that efforts are made to prevent such ideological differences from affecting the bloc.

He noted that Lula and Milei now hold "irreconcilable differences," but both acknowledge that their countries' relationship extends beyond their personal connection. The tension escalated on July 25 when Milei participated in a Liberal Party convention in São Paulo, where he referred to Lula as a "thief" and a "convict," accused him of mismanaging public funds, and insulted Supreme Federal Court Justice Alexandre de Moraes.

Milei also described Brazilian President Jair Bolsonaro, who is serving a prison sentence for attempting a coup, as an unjustly imprisoned friend. Brazil responded by recalling its ambassador in Buenos Aires and downgraded relations to a lower level, requesting the Argentine ambassador's departure. This marks the first time since democracy returned to both nations that the relationship reached such a low point.

Brazilian Foreign Minister Mauro Vieira called the incident an unprecedented provocation in over two centuries of bilateral relations, while the Argentine foreign ministry regretted Brazil's unilateral decision and criticized the country for isolating itself over ideological matters. Uruguayan Foreign Minister Mario Lubetkin expressed concern over the situation, stating that it does not benefit anyone.

The matter has raised concerns within Mercosur, comprising Argentina, Brazil, Paraguay, and Uruguay, with Bolivia in the process of full accession.