The governor of Banco de Portugal (BdP) nominated by the Government, Álvaro Santos Pereira, advocated today in parliament that central bank employees should refrain from active political involvement to safeguard the institution’s independence.
“I’m not going to ask anyone at Banco de Portugal for their party affiliation, but I believe those working at BdP should not be involved in active political life,” the economist stated during a hearing with members of the Budget and Finance Committee.
Socialist MP Mendonça Mendes had questioned Álvaro Santos Pereira on whether he maintained a proposal from a book he wrote in 2011, suggesting that all hires for state entities should disclose the political affiliation of those being hired, implying that a positive response would immediately disqualify the economist from the position of governor.
Santos Pereira stated that if any BdP worker wishes to be actively involved in a party, “it will have to be considered,” leaving open whether formal objections would be raised.
“If someone at BdP decides they want to work actively for a party, I think that’s an issue that needs to be looked at. Those at BdP should be independent. There is a public mission while they are [at BdP], if they want other missions…,” he said.
When questioned by PCP MP Alfredo Maia on whether he intends to restrict constitutional rights, such as political rights, for BdP employees (equating them to security agents and military personnel), Santos Pereira said he does not intend to restrict any rights.
“I don’t want to make any constitutional restriction, they have the right to collaborate with whoever they want, but as BdP employees, it’s important they abstain. Those working at the central bank of the country cannot put that independence at risk,” he asserted.
When questioned by PSD MP Alberto Fonseca on whether he is a member of any party or a candidate for leadership of any political party (alluding to the current governor, Mário Centeno, and his connections to the PS), Álvaro Santos Pereira stated he does not belong to any party and has never considered running for political office.
“I received invitations, but I did not accept,” he said.
The Government announced on July 24 that Álvaro Santos Pereira, chief economist of the Organisation for Economic Co-operation and Development (OECD) and former Economy Minister from 2011 to 2013 in the PSD/CDS-PP government of Passos Coelho, would be the next governor of BdP, replacing Mário Centeno (former Finance Minister of PS governments between 2015 and 2020).
Centeno remains as governor until Santos Pereira undergoes the parliamentary inquiry before being appointed, which is taking place after the parliamentary recess and is occurring this morning.
According to the BdP Organic Law, it is the governor’s responsibility to be part of the European Central Bank Council and participate in its decisions (especially monetary policy decisions, such as those relating to interest rates), as well as to coordinate Banco de Portugal’s activities of economic analysis and supervision and regulation of the banking sector (including bank resolution if necessary).
