Portuguese PM Argues The Case For Banking Nationalisation

APPA NEWS, LISBON - PORTUGAL - Portuguese PM José Sócrates has argued the case for taking banks into public ownership, should the need arise.

The Portuguese PM’s comments were the short answer to opposition leaders from CDS-PP party, who have been questioning the matter, following the Government’s decision to take BPN bank into public ownership, as a result of the recent credit crunch and the financial crisis.

“The Government decision to take a bank into public ownership is entirely legitimate”, said Mr Sócrates, when questioned in regards to the legislative process which lead to the nationalisation of BPN bank, adding however that such decisions must now pass through Parliament for approval, as required by the Portuguese Constitution.

The Portuguese Prime Minister’s comments took place at the end of a meeting between the Government and trade unions, to agree upon an increase on the Portuguese National Minimum Wage, which is expected to reach EUR 450.00, with effect from 1st January 2009.