Portuguese Politics Bordering On Hysterics

APPA NEWS, LISBON - PORTUGAL - Portuguese politics have been known for many years for running high spirited and with a fair dose of wit, but a new corner stone has been turned, with a formidable row between the opposition parties and the Portuguese Government, concerning the recent uptaking of BNP Bank into public ownership, after it apparently ran into murky waters, following the international financial crisis.

During a press conference held at São Bento Palace, the Portuguese Parliament HQ, the Government considered Ms Manuela Ferreira Leite [pictured left/above], the main opposition party PSD leader, of “acting desperate”.

The “pleasantry” followed an apparently rather assertive and vociferous attack on the Prime Minister by Ms Ferreira Leite, who accused the Portuguese PM of being “an authoritarian who cannot be trusted”, during the PSD party Annual Conference closing speech. The attack came rolling downhill at speed, due to the recent decision by the Portuguese Government to nationalise BPN Bank, sparking fears of a wave of nationalisations.

Ms Ferreira Leite, who is known at home and abroad for her “Thatcher-like” style did not spare the Prime Minister, and demanded a formal apology from the Government.

Meanwhile, the leader of the opposition party CDS-PP, Mr Paulo Portas, who never ceases to amaze for his energetic attacks, demanded the resignation of the Governor of the Bank of Portugal, Mr Vitor Constancio, following the BPN Bank nationalisation. According to the CDS-PP leader, the Bank of Portugal is not independent enough nor can it be trusted as an independent regulator.

The Government however replied by reasserting the regulator’s independence, and accused the opposition parties of bias, saying that the opposition tends to recognise the regulator’s independence only when its decisions are to their liking.

The row is expected to continue, especially if Portugal comes to face more financial turmoil, eventually leading to the nationalisation of other banking institutions, a situation which is not expected to develop, as the Government denies plans for further action.