The Wall Street Journal - 02.08.2019

A16| Friday, August 2, 2019 ** THE WALL STREET JOURNAL.

within five years. As part of

that goal, the government is

planning to hold a contest to

select a design for a new spire.

After the work was halted,

a French environmental group

filed a lawsuit alleging that

authorities failed to take nec-

essary steps to protect work-

ers and residents from lead

poisoning.

About 100 construction

workers, engineers and archi-

tects were working on the site

last week before the shut-

down. They were installing

wooden supports inside the

cathedral’s flying buttresses to

relieve the pressure on them

and prevent the building from

shifting.

Meanwhile, only a fraction

of the €850 million (about

$940 million) in restoration

funds pledged by companies

and some of France’s richest

families has been delivered,

officials say.

Philippe Villeneuve, the res-

toration’s chief architect,

warned that a summer heat

wave could further erode the

centuries-old stonework.

Actual restoration work

won’t begin for several

months while officials work to

stabilize the structure, said

André Finot, the cathedral’s

spokesman.

Lead-poisoning concerns

have loomed since the fire

caused Notre Dame’s majestic

roof to collapse, leaving cra-

terlike holes in the cathedral

ceiling and its nave exposed to

the elements.

The roof was made of more

than 1,300 lead tiles, each

about a quarter-inch thick.

Notre Dame’s massive spire,

also destroyed, was built with

250 tons of lead.

“We’re finding it very diffi-

cult to ascertain how much

lead has been dispersed by the

smoke from the fire, and how

much lead has simply been

contained at the cathedral

site,” Emmanuel Gregoire,

deputy mayor of Paris, said in

an interview.

Following the fire, health

authorities tested the air

around the cathedral and

quickly declared it safe, saying

the main risk of contamination

came from ingesting the metal

that collected on the floor and

the surfaces of surrounding

buildings.

Authorities have continued

to test for lead in the area. In

the cathedral’s square, which

remains closed to the public,

tests have found lead levels of

more than 1 million micro-

grams per square meter, well

above the 5,000 micrograms

per square meter that authori-

ties consider normal in Paris.

Testing also showed lead

levels of almost 20,000 micro-

grams per square meter at a

popular square across the

river, which is open to the

public.

Young children are particu-

larly vulnerable to lead poi-

soning, which can impair neu-

rological development, said

Hervé Laborde Casterot, a tox-

icologist in Paris. “I’m really

not worried for the adults,” Dr.

Laborde Casterot said.

Aurélien Rousseau, the

Paris region’s top health offi-

cial, said “all the data we have

been able to collect shows that

the health of the population

has been preserved.”

PARIS—The repair of Notre

Dame Cathedral, already a

devilishly complex affair, just

got harder.

Paris officials halted resto-

ration work on the 850-year-

old landmark last week after a

workplace inspection raised

concerns that workers and lo-

cal residents could be exposed

to toxic levels of lead.

Tons of the metal went up

in smoke or melted during the

fire that ravaged the cathe-

dral’s roof and central spire on

April 15, blanketing the cob-

blestones around the church.

The lead fallout complicates

the obstacle course officials

face in returning Notre Dame

to its former glory—a goal

that President Emmanuel Ma-

cron has vowed to reach

BYNICKKOSTOV

Notre Dame Restoration Halts Over Lead Fears

Rodrigo Maia cried after his pension overhaul passed in the House.

ANDRE COELHO/BLOOMBERG NEWS

LONDON—An abrupt and

messy split between the U.K.

and the European Union would

heap further pressure on a

global economy beset by slow-

ing growth and tensions over

trade, the U.K.’s central bank

chief said, in a rare warning

on the potential effects of

Brexit beyond Britain’s shores.

At a time when a tariff fight

between Washington and Bei-

jing is crimping trade, indus-

trial production and global

growth, a no-deal break “would

be an unwelcome development

for the global economy,” Bank

of England Gov. Mark Car-

ney said Thursday at a press

conference to present the

BOE’s quarterly forecasts for

growth and inflation.

Mr. Carney’s remarks add

to the growing upheaval over

the U.K.’s break with the EU.

Prime Minister Boris Johnson,

who took office last week,

promises to pull Britain out of

the bloc by Oct. 31, even in the

absence of a new agreement

with the EU that would rede-

fine economic relations be-

tween Britain and its biggest

trading partner.

Mr. Johnson’s hard-driving

approach to a so-called no-

deal split has unnerved inves-

tors, pushing the pound this

week toward its lowest level

against the dollar in more

than 30 years.

The question of when and

how the U.K. will split with its

biggest trading partner has

complicated Mr. Carney’s job

of steering the world’s fifth-

biggest economy.

The economy grew rapidly

in the first quarter as factories

raced to keep up with demand

from customers eager to stock-

pile British goods ahead of the

country’s original exit date of

March 29. But growth slowed

sharply in the second quarter,

according to preliminary data.

On Thursday, the BOE held

its benchmark interest rate

steady, saying uncertainty

over the terms of Britain’s de-

parture from the bloc is cloud-

ing the economic outlook. Mr.

Carney said he has recently

fielded more calls from policy

makers abroad airing concerns

about a no-deal Brexit.

But the central bank also

stuck to guidance that if Brit-

ain’s withdrawal goes

smoothly, it expects to nudge

up borrowing costs, a stance

out of sync with easier-money

policies being pursued by

other major central banks.

The Federal Reserve cut

short-term interest rates by a

quarter percentage-point

Wednesday, a pre-emptive move

aimed at cushioning the U.S.

from that global slowdown. The

European Central Bank has sig-

naled it is poised to follow suit.

The BOE also reiterated

that it might cut or raise in-

terest rates in the event of a

no-deal split, an equivocal

message that has been widely

spurned by investors. As the

perceived risk of an abrupt

split with the EU has risen,

short-term U.K. interest rates

have declined—a clear sign

that investors are betting on a

looser policy stance.

Mr. Carney said a no-deal

split could cause gyrations in

financial markets, adding that

a messy Brexit could have a

bigger effect on the global

economy than the U.K.’s rela-

tive size would imply.

BYJASONDOUGLAS

ANDPAULHANNON

BOE Head

Warns

Of Brexit

Fallout

Among the more serious

challenges is reversing the col-

lapse in oil production.

Mr. Ross said that the U.S.

plan to repair the sector calls

for a bigger role for private

firms, which until now have

faced restrictions to operate.

The Commerce Department

would create a clearing house

to help business activity, pro-

viding information about trade

and investment opportunities

for U.S. and international busi-

nesses, Mr. Ross said.

The U.S. plan also calls for

recovering Venezuela’s central

bank, revitalizing the private

banking sector and promoting

financial reforms.

“Everything is needed,” Mr.

Ross said.

by Mr. Ross echo a Trump ad-

ministration approach of pro-

moting political change by fa-

cilitating investment.

Mr. Ross said that under the

Venezuela blueprint, which

runs several hundred pages,

the U.S. would work to rehabili-

tate the crippled private sector,

restore oil production, revive

farming and develop financing.

Speaking at a conference of

infrastructure executives orga-

nized by Washington-based

consulting firm CG/LA Infra-

structure Inc., he said that the

U.S. and other countries would

try to resolve short-term

needs such as humanitarian

aid, followed by efforts to sta-

bilize the economy and the

country’s infrastructure.

countries recognized Mr.

Guaidó, head of Venezuela’s

congress, as the legitimate

leader in January after Mr.

Maduro’s 2018 reelection was

marred by fraud.

But a monthslong campaign

of street demonstrations, U.S.

financial sanctions and efforts

to get the military to turn on

Mr. Maduro have failed.

The opposition and Maduro

regime are expected to resume

negotiations soon, Carlos Vec-

chio, Mr. Guaidó’s top envoy to

Washington, said this week. Mr.

Guaidó’s negotiators are press-

ing Mr. Maduro to hold a new

presidential election, which he

has so far rejected, people fa-

miliar with the talks said.

Parts of the plan outlined

“For immediate relief, the

U.S. will ease sanctions, pro-

mote domestic and interna-

tional trade credit, deploy

technological advisers and en-

gage international financial in-

stitutions,” Mr. Ross said.

President Trump said on

Thursday that he is consider-

ing a blockade or quarantine

against Venezuela.

“Yes, I am,” Mr. Trump told

reporters when asked about

the possibility in reaction to

Russian, Chinese and Iranian

involvement in the country. He

didn’t elaborate and the Na-

tional Security Council de-

clined to comment. The Penta-

gon referred questions to the

White House.

The U.S. and many other

print to address the economic

calamities in a country buf-

feted by inflation and a sharp

economic contraction. Venezu-

ela is also struggling with $

billion in external debt, ac-

cording to the Institute of In-

ternational Finance.

“Reversing socialism will be

done by facilitating private in-

vestment, rehabilitation of

power generation and oil-bid-

ding rounds,” Mr. Ross said.

The commerce secretary

said the U.S. would be ready to

loosen the sanctions that

Washington imposed on Vene-

zuela as the Maduro regime

turned increasingly autocratic

in recent years. The sanctions

have choked Venezuela’s life-

blood, its oil industry.

BRASÍLIA—U.S. Commerce

Secretary Wilbur Ross laid out

a plan including credit and in-

vestment to help rebuild Vene-

zuela’s economy under demo-

cratic rule, as Washington

pushes for new leadership in

the struggling nation.

The plan is contingent on

the removal of Venezuela’s au-

thoritarian leader, President

Nicolás Maduro, and his re-

placement with Juan Guaidó,

leader of a fractious opposi-

tion supported by the U.S.

Speaking in the Brazilian

capital to executives from

Latin America on Thursday,

Mr. Ross said 14 U.S. govern-

ment agencies have a blue-

BYPAULOTREVISANI

U.S. Plans Venezuela Aid if Maduro Quits

Preliminary work was under way recently in Notre Dame Cathedral in Paris. A fire that damaged the 850-year-old landmark also burned and melted tons of lead.

STEPHANE DE SAKUTIN/PRESS POOL

BRASÍLIA—Rodrigo Maia is

an unlikely hero to many. As

head of the scandal-plagued

lower house of Congress, the

ex-banker has been one of Bra-

zil’s most reviled public fig-

ures.

But in recent weeks he

pulled off a startling feat: per-

suading politicians from multi-

ple, warring parties to cut Bra-

zilians’ generous pensions.

That legislative victory, and

his ambitious agenda, includ-

ing a tax overhaul and new

curbs on bank fees, come as

President Jair Bolsonaro’s cul-

turally conservative agenda is

being thwarted by lawmakers

and the Supreme Court.

Congress’s growing role has

prompted Brazilians—and even

Mr. Bolsonaro—to wonder who

is running the country now.

“They want to turn me into

the Queen of England?” Mr.

Bolsonaro said recently, com-

plaining of being sidelined.

The watershed vote last

month to slash pension spend-

ing by as much as $240 billion

over the next decade is ex-

pected to be ratified by the

Senate this year. By raising

contributions and setting the

minimum retirement age at 65

for men and 62 for women for

most workers, it will likely

save Brazil from financial col-

lapse.

The winning 379-to-

margin was larger than ex-

pected, with the biggest turn-

out for any major bill on re-

cord, leaving Mr. Maia in tears

at the final tally.

“No other country has man-

aged a pension reform of this

size,” said Mr. Maia during an

interview at his official resi-

dence in Brasília, where law-

makers from across Brazil have

gathered recently to haggle.

Since the 1990s, Brazilian

presidents have tried—and

largely failed—to overhaul the

pension system.

While Mr. Bolsonaro’s ad-

ministration presented the

current bill, Mr. Maia hashed

out the details with lawmakers

in a notoriously fractious Con-

gress. Mr. Maia’s plans to press

ahead with other initiatives

mark a big shift in Brazilian

politics, where Congress has

been viewed as a redoubt of

venal politicians where little

gets done.

Brazil has 33 political par-

ties—including Mr. Maia’s cen-

ter-right DEM party—requiring

presidents to form sprawling

coalitions to pass a shared

agenda. In the past, this has

also meant opportunity for

corruption, as parties trade

their support for government-

backed bills in return for cash

and other favors.

But Mr. Bolsonaro, the fire-

brand ex-army captain who

took office in January, de-

lighted Brazilians by vowing to

do away with “old politics.” He

began his administration by

mostly ignoring Congress, us-

ing temporary presidential de-

crees to force through his sig-

nature campaign promise to

loosen gun laws.

The Senate overturned one

of those decrees in June, while

lawmakers locked horns with

Mr. Bolsonaro’s inner circle in

vicious public spats on Twitter.

“The result was months of

instability,” said Mr. Maia in

the interview, comparing Bra-

zil’s predicament to that of

other countries where anties-

tablishment leaders have risen

to power. “How does a presi-

dent who wins an election with

a radical campaign against pol-

itics actually govern?” he said.

“These movements have a lot

of power to remove the estab-

lishment but they can’t fathom

what to put in its place.”

Brazil, or at least Mr. Maia,

appears to have come up with

a solution: Congress will take

the lead.

Mr. Maia, who became presi-

dent of the Chamber of Depu-

ties in 2016, said the lower

house will pursue its own

agenda of “permanent reforms

that do not benefit the govern-

ment, but benefit the state and

society.” As perceived villains

of society and the administra-

tion, lawmakers have banded

together to win back Brazilians’

respect by fixing the country

themselves, Mr. Maia said.

A spokeswoman for Mr. Bol-

sonaro declined to comment.

While some of Mr. Maia’s

proposals coincide with the

president’s own plans, includ-

ing pension and tax reform, Mr.

Maia said he also wants to do

more to tackle poverty, includ-

ing improving basic sanitation

in Brazil, where over half of

sewage still goes untreated.

BYSAMANTHAPEARSON

Big Pension Deal Signals Power Shift in Brazil

WORLD NEWS