Portugal Parliament approves new Court of Auditors organization law

The Portuguese Parliament has approved a new law governing the organization and processes of the Court of Auditors (Tribunal de Contas). The legislation aims to streamline public investment by removing the requirement for prior approval (visto prévio) for public contracts up to certain thresholds.

Under the new rules, public contracts up to 10 million euros do not require prior oversight by the Court of Auditors. For contracts exceeding this amount, entities such as municipalities, the State, and autonomous regions may opt out of the prior review process, provided they maintain internal control systems and periodic audits accredited by the government and the General Inspection of Finance (IGF).

The law also restricts punishments for financial infractions caused by mere negligence. While the government maintains that the reform focuses oversight on more relevant areas and promotes faster decision-making, the President of the Court of Auditors, Filipa Urbano Calvão, has described the proposal as “truly unconstitutional.”

The bill passed with support from the PSD, CDS, and Iniciativa Liberal, while facing opposition from Chega, PCP, and Bloco de Esquerda. The Socialist Party (PS) abstained from the vote.