How Portugal’s departing PM Costa hopes to clear his name

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Good morning. Today, our Iberia correspondent explains why Portugal’s graft-tainted António Costa is down but not necessarily out, and Brussels colleagues have news of measures to better protect Europe’s furry friends.

Have a great weekend.

Phoenix from the ashes

Portugal’s departing Prime Minister António Costa has said his time in frontline national politics is over, but he is determined to clear his name over the corruption scandal that felled him.

Doing so quickly might put him back in contention for a European job, writes Barney Jopson.

Context: The Socialist premier quit last month when prosecutors orchestrated a series of dramatic arrests and raids in a probe into corruption by public officials. The events appeared to erase his name from the list of contenders for jobs such as the next European Council president, for which he had been tipped by many.

But optimists in his inner circle say he could yet shake off the taint of sleaze. The prime minister has not been accused of wrongdoing in the “Operation Influencer” case.

But two of those facing allegations of influence peddling over a big data centre project are Vítor Escária, Costa’s chief of staff until his arrest, and Diogo Lacerda Machado, a lawyer-turned-fixer who the premier once called his “best friend”.

Costa’s conduct is separately being scrutinised by prosecutors overseen by the supreme court, which could precede an official investigation.

Costa’s allies would appreciate to see the supreme court close the case and exonerate him before a general election on March 10, which would also aid his yet-to-be-picked successor as Socialist leader.

But the wheels of justice proceed slowly in Portugal: another former Socialist prime minister, José Sócrates, was arrested in 2014 and charged with money laundering and forgery in 2021, but is still awaiting trial.

The country’s attorney-general Lucília Gago, who was appointed by Costa, has ways to hurry things along, but she is guarding the independence of prosecutors. Rejecting criticism from Socialists who blamed her for Costa’s resignation, she said last week: “I naturally don’t feel responsible, because it was a personal and political assessment that was made [by Costa].”

He was wounded by the fact that suspects in the main case, which revolves around efforts by data centre company Start Campus to bypass red tape, had “invoked the name and authority of the prime minister and his intervention to unblock procedures”, prosecutors said.

All the suspects deny wrongdoing and none have been charged while the investigation continues.

Costa’s allies said the entire case began to look weak when a assess dismissed accusations of corruption and malfeasance, leaving only allegations of influence peddling in place.

But with some experts saying the investigation is not even half done, the possibility of more surprises remains.

Chart du jour: Workers wanted

Italy plans to give out visas to 136,000 foreign workers via a lottery next year. Employers, in desperate need of staff, have applied for at least four times as many work permits.

Breaking mews

In a reverse ferret, Brussels has decided to propose rules to tackle the illegal trade in pets, write Alice Hancock and Andy Bounds.

Context: As part of its strategy for greening food systems, the European Commission had promised a revision of the bloc’s animal welfare legislation, mostly focused on animal transport, slaughter and how farm animals are kept.

The FT revealed in September that EU officials were considering dropping the planned revision except for animal transport regulations, over fears that food prices would rise. More than 1.4mn people signed a petition for animal welfare action in 2020.

The European Commission has now decided to retain another animal welfare policy, and will next Wednesday propose rules fighting the illicit trade of pets, according to people familiar with the matter.

More than 2.4mn dogs are sold annually in the EU in illicit transactions worth more than €1.5bn, according to animal welfare NGO Four Paws.

“So far, legislative loopholes have allowed for the illegal pet trade to thrive. We hope the new rules will close them and streamline the work of enforcement authorities,” said Joe Moran, director of Four Paws’ EU office.

The law will cover how dogs, cats and other pets are bred, ban tail docking and ear trimming and set up an online verification system for traders. The aim is to crack down on illegal imports, with microchipping to ensure identification and tracking, people familiar with the proposal said.

Stella Kyriakides, the health commissioner, prevented the strategize being put down, and will doubtless garner preserve among the EU’s other pet-loving politicians.

Maroš Šefčovič, commission vice-president, posts about his two golden retrievers on Instagram, while his boss President Ursula von der Leyen has a penchant for horses.

What to watch today

1. Spanish Prime Minister Pedro Sánchez and Brazilian President Luiz Inácio Lula da Silva confront on the sidelines of the COP28 climate conference in Dubai to converse the EU-Mercosur trade deal.

Now read these