Mário Centeno warns of €12 billion risk to Portuguese public accounts

Former Finance Minister Mário Centeno has warned that Portugal faces a potential €12 billion cut in public spending over the next two years if Brussels does not redefine the country's budgetary targets.

In an interview, Centeno criticized Prime Minister Luís Montenegro's administration, accusing the government of “governing under the discourse of fear” and failing to provide clear explanations to the public. He challenged the executive to clarify its concerns regarding a possible new national bailout and to address the structural deficit.

Centeno disputed the government's reported budget surplus of 0.5% for the first half of the year, arguing that this figure is misleading because it includes the Social Security balance. He asserted that once this factor is removed, the public accounts face a “deep deficit,” which undermines the government's ability to fund measures against inflation. He further accused the administration of depleting previous financial cushions through tax reductions without securing adequate reserves.