In Lisbon, the Bank of Portugal’s ethics committee has called a meeting to assess the actions of governor Mario Centeno, whose impartiality has been questioned after the outgoing prime minister suggested him as a potential replacement, according to local media.
Antonio Costa resigned on Tuesday due to an investigation into alleged illegalities in his government’s management of green energy projects, prompting President Marcelo Rebelo de Sousa to call a snap election for March 10. Costa denies any wrongdoing.
On Thursday, Costa mentioned that, instead of holding an election, his Socialist party (PS) had proposed to Rebelo de Sousa that he appoint Centeno, a respected European Central Bank policymaker and former finance minister in Costa’s administration, as the new premier.
Local media reported that Centeno had agreed to have his name put forward, sparking concerns about his close ties to the PS and raising doubts about his independence if he were to stay on as central bank governor.
Rebelo de Sousa rejected Costa’s proposal and called for the election instead.
Opposition parties swiftly responded, with the parliamentary leader of the main opposition Social Democrats, Joaquim Miranda Sarmento, stating that the incident was “another demonstration … of his (Centeno’s) lack of independence.”
Centeno’s rapid transition from the finance ministry to the central bank in July 2020, during Costa’s second term, had previously raised eyebrows. Centeno announced his departure from the finance ministry in June 2020 and was nominated a month later.
Costa’s office announced that he would address the nation at 8 p.m. (2000 GMT), but the nature of his statement was not disclosed.
The online economic newspaper Eco reported that the ethics committee was collecting information about Costa’s proposal of Centeno and would convene on Monday to investigate the allegation of lack of independence.
A spokesperson from the central bank mentioned that it was the committee’s responsibility to comment on the issue.
The newspaper Jornal de Negocios reported that the committee would release its opinion shortly after the meeting.
One of the responsibilities of the committee is to oversee the conduct of the bank’s directors. It convenes every three months, or more frequently if necessary.
(Reporting by Catarina Demony and Sergio Goncalves; Editing by Kevin Liffey)
