2023-11-07 14:58:19
The Prime Minister of Portugal, António Costa, from the Socialist Party (PS), presented his resignation this Tuesday, 7th, amid allegations of corruption in the exploration of lithium and green hydrogen.
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The scandal occurs at a time when, despite still maintaining growth in the Gross Domestic Product (GDP), the country is faced with a housing crisis and an increase in energy tariffs, resulting from the war between Russia and Ukraine.
Costa presented his resignation to President Marcelo Rebelo de Sousa and then made the announcement on TV, in which he said he was “totally available to cooperate with Justice.” He also said he had a “clear conscience.”
“The dignity of the prime minister’s duties is not compatible with any suspicion regarding his integrity, his good conduct, and much less with the suspicion of the commission of any criminal act”, he stated, in the announcement.
In a statement, Rebelo de Sousa confirmed that he accepted the prime minister’s resignation. He then called parties with seats in the Assembly of the Republic to meet on Wednesday the 8th and with the State Council for Thursday the 9th.
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This Tuesday, government buildings were searched and seized, including the Prime Minister’s official residence (Palacete São Bento), the Ministry of the Environment and the home of the Minister of Infrastructure, João Galamba.
Five people were arrested, according to the Public Ministry of Portugal (MP). One of them would be Vitor Escaria, chief of staff to the prime minister. Business consultant Diogo Lacerda Machado, a friend of Costa, was also arrested.
In the investigation, according to CNN, Galamba and the president of the environmental agency APA, Nuno Lacasta, were named as formal suspects and must answer for the case in court.
To the broadcaster, Galamba’s office and the APA did not immediately respond to a request for comment.
What are the complaints against the government
Palacete São Bento is the official residence of the prime minister | Photo: Reproduction/Wikimedia Commons
A possible corruption and influence peddling scandal in lithium exploration concessions in the north of the country became the target of the MP’s investigation. The project focused on creating a hydrogen plant in the port of Sines and investing in a data center in the region.
Those investigated are under suspicion of having committed crimes of malfeasance, active and passive corruption and influence peddling, according to the Portuguese MP in a statement.
Prosecutors highlighted, in the statement, that they had received information that the suspects used Costa’s name and authority to “unblock procedures” related to the business. According to them, Costa’s possible participation in the business will be analyzed by the Supreme Court.
Portugal is the largest European producer of lithium, with a total of 60,000 tonnes of known reserves. The objective is to increase production, preparing a workforce capable of developing superior quality lithium, for the production of electric cars and powering electronic devices.
In January, Costa had already been involved in controversy surrounding the privatization of the state-owned airline TAP.
Housing crisis
Costa resigned at a time when the government was having difficulty dealing with the housing problem in Portugal. Between 2012 and 2021 the cost of housing increased by 78% in Portugal, compared to 35% in the European Union, according to a study by the Portuguese foundation Francisco Manuel dos Santos.
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This occurred due to the increase in foreign investments, starting in 2011, when Portugal needed resources and opened up to international capital.
Government measures such as “golden visas,” which granted residency to wealthy investors, and tax advantages for foreign retirees were implemented. These benefits attracted “digital nomads”, technology entrepreneurs who previously worked remotely and, due to the facilities, moved to Portugal.
The price of housing rose, precisely at a time when the European central bank increased the interest rate. In this context, aggravated by the increase in energy tariffs, due to the war between Russia and Ukraine, the country’s GDP growth has entered a process of deceleration, with the risk of increased inflation, according to the Bank of Portugal (BdP) .
In the bank’s latest balance sheet, the forecast is that GDP expansion in 2023 will be 2.1% this year and will remain at 1.5% in 2024. According to the institution, inflation should also increase by 5.4%. % in 2023 and still an uncomfortable 3.6% in 2023, mainly due to the increase in energy tariffs.
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