Portuguese PM resigns over lithium deal probe
Portuguese Prime Minister Antonio Costa resigned amidst a corruption investigation into his government’s handling of lithium mining and hydrogen projects. The chief of staff, Vitor Escaria, was detained in the probe, and Costa himself was the subject of a related investigation. In his televised statement, Costa emphasized the incompatibility of suspicions regarding his integrity or criminal activity with the role of prime minister. The president will now decide whether to allow Costa’s socialists to form a new government or call for elections.
The political crisis raises concerns about the approval of the 2024 budget bill and the privatization of the Portuguese national airline TAP. There is speculation that a snap election is the most likely outcome.
The investigation focuses on graft and influence peddling in lithium exploration concessions and a hydrogen plant project, with suspects allegedly using Costa’s name and authority to advance these deals. Portugal’s substantial lithium reserves make it central to Europe’s battery supply chain. Environmental concerns and opposition from local residents have surrounded lithium projects.
Costa, who had previously received praise for his economic policies, faced scandals during his last term in office, leading to calls for his government’s resignation. Financial markets are expected to remain stable due to Portugal’s strong reputation.
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