Portuguese Prime Minister Resigns After Chief of Staff Arrested

Mr. Costa announced his decision to resign in a speech in the Portuguese capital Lisbon on November 7 and his resignation could lead to an early election, according to Bloomberg.

Mr. Antonio Costa speaks at Sao Bento Palace in Lisbon on November 7.

The Portuguese prosecutor general's office said in an emailed statement on November 7 that Vitor Escaria, the prime minister's chief of staff, was among five people arrested in an ongoing investigation involving lithium exploration concessions and a hydrogen production project.

Prosecutors earlier in the day named Infrastructure Minister Joao Galamba as a formal suspect. The opposition has called for the government to resign immediately, Reuters reported. Costa said he was ready to cooperate with the justice system after prosecutors said he was also the target of an investigation.

Mr. Costa, who has been prime minister since 2015, has led his Socialist government to a landslide victory in parliament . Despite the support of lawmakers, Mr. Costa has faced challenges over the past year, including rising living costs, protests from teachers and a dispute over the state-owned airline TAP SA.

Before announcing his resignation, Mr. Costa met with Portuguese President Marcelo Rebelo de Sousa in Lisbon. In Portugal, the prime minister and the government set policy, while the president is largely ceremonial, although he has the power to appoint the prime minister, dissolve parliament and call elections, according to Bloomberg.

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