Political crisis continues, central bank governor under fire

Political crisis continues, central bank governor under fire

The Portuguese CEO has been in the spotlight following the surprise resignation of Prime Minister António Costa. As a reminder, the latter left office on November 7, following his involvement in a corruption investigation targeting members of his government. The governor of the Bank of Portugal, Mário Centeno, is now the target of criticism. In an interview with Financial Times Posted on Sunday, Mario Centeno claimed he was invited to “ by the President and the Prime Minister to consider the possibility of leading the government », instead of Antonio Costa.

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On Monday, November 13, the Bank of Portugal denied this. Governor Mario Centeno confirms that he was not invited by the President of the Republic to head the government “This invitation was only addressed to the governor by the prime minister after,” she said in a press release, in response to an official denial from conservative head of state Marcelo Rebelo de Sousa. Talks between the Prime Minister and the President », Bank of Portugal locator.

The opposition demands the governor's resignation

Finally, the head of state refused to replace António Costa, whose Socialist Party wanted to remain in power thanks to the absolute majority it obtained in the January 2022 elections, and decided to call early legislative elections on March 10.

But the governor of the Bank of Portugal, who was finance minister in Antonia Costa's government between 2015 and 2020, and then president of the Eurogroup from 2018 to 2020, is now facing criticism from the right-wing opposition.

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Mario Centeno « She will have to evaluate her integrity. », notably Luis Montenegro, leader of the main opposition party, the Social Democratic Party (PSD, centre-right), suggested that the central bank governor resign.

“II can't continue at the Bank of Portugal. For his part, Liberal leader Rui Rocha stated clearly.

According to local media, the Bank of Portugal's ethics committee is scheduled to meet on Monday to assess Mario Centeno's situation.

A scandal shakes the government

The political reaction is strong. And for good reason, the scandal affecting the Portuguese government is huge. The case involving the Portuguese Prime Minister is, according to the prosecution, related to suspicions of “ Embezzlement, positive and negative corruption of political office holders and abuse of influence Regarding the allocation of lithium exploration and hydrogen production licenses.

During the investigation The suspects also mentioned the name and authority of the Prime Minister. “It is suspected that he intervened himself,” the prosecutor added in a press statement. To cancel the ban “In the context of this case, Antonio Costa will” Subject of investigation “Always independent according to the prosecution. But Antonio Costa confirmed during his talk to the press that “ Surprised By opening this investigation.

But this is not the first time for the head of government. After his great electoral victory on January 30, 2022, which gave him the absolute majority that was supposed to guarantee the stability of his government, António Costa has seen his popularity erode due to repeated scandals. The most notable of these is the “TAP Gate”, named after the public airline that forced more than a dozen ministers and secretaries of state to leave their posts over the affair. This scandal came to light almost a year ago after it was revealed that a severance package of €500,000 had been paid to the director of TAP, who was appointed Minister of the Treasury a few months later.

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For the opposition, distrust of the government is normal, and the latter now accuses Mario Centeno of being too close to the existing executive power.

(With AFP)