Portugal's political crisis stalls key projects, TAP privatisation

Portuguese green energy investments that require European Union funds and the privatisation of airline TAP are among the projects at risk of being derailed in the wake of Prime Minister Antonio Costa's resignation, experts said on Wednesday. Costa resigned after an investigation into alleged corruption in his inner circle around projects linked to lithium mining, green hydrogen and a large data center. Prosecutors detained Costa's chief of staff and are investigating the outgoing Socialist prime minister, who denied any wrongdoing. The resignation means the government will act only in a caretaker role, pending a decision by the country's president on whether to call fresh elections or allow the Socialists to form a new government. Miguel Frasquilho, an economist and former TAP chairman, said the privatisation of the national carrier, which the government hoped to start this year, will be suspended and "it will only be able to proceed with a new government" exercising full powers. Frasquilho, however, added that TAP's sale value might benefit from a longer wait. "The harsh restructuring imposed to make the company profitable and sustainable is now bearing fruit and the government should not rush its privatisation," he said. <br/>