# Portuguese fiscal policy criticism by Mário Centeno > Live situation record from CLSTR: https://clstr.news/situations/portuguese-fiscal-policy-criticism-by-mrio-centeno > Updated: 2026-10-07T08:40:46.000Z. Sources: 10. Developments: 2. Mário Centeno, former Finance Minister and Governor of the Bank of Portugal, has issued several warnings regarding the fiscal management of Prime Minister Luís Montenegro’s administration. Initially, Centeno warned of a potential €12 billion risk to Portuguese public accounts over a two-year period if budgetary targets are not redefined by Brussels. He criticized the government for “governing under the discourse of fear” and disputed the reported 0.5% budget surplus, arguing that the inclusion of the Social Security balance masks a “deep deficit.” Centeno subsequently expanded his critique, accusing the Aliança Democrática (AD) of depleting fiscal buffers built over decades. He highlighted a projected gap where public spending is expected to increase by 25% between 2024 and 2026, outstripping a projected 19% growth in the nominal economy. While noting positive trends in unemployment and public debt, he warned that the deficit is approaching 2% of GDP and suggested the 2027 Budget will require a significant course correction. ## Timeline ### 2026-10-07: Mário Centeno criticizes Luís Montenegro over fiscal policy Former Bank of Portugal Governor Mário Centeno criticized Luís Montenegro’s government, alleging fiscal mismanagement and warning that current spending outpaces economic growth. 6 sources. https://clstr.news/cluster/mrio-centeno-criticizes-lus-montenegro-over-fiscal-policy ### 2026-09-25: Mário Centeno warns of €12 billion risk to Portuguese public accounts Former Finance Minister Mário Centeno warns Portugal faces a €12 billion spending cut risk and criticizes the government for lack of transparency regarding the structural deficit. 7 sources. https://clstr.news/cluster/mrio-centeno-rejects-comparisons-to-pedro-passos-coelho --- Cite as: Portuguese fiscal policy criticism by Mário Centeno. CLSTR, https://clstr.news/situations/portuguese-fiscal-policy-criticism-by-mrio-centeno