Bank of Portugal Stands Firm: No Public Cost Assumption in Rosalino Case

Bank of Portugal Affirms Legal Standpoint in Rosalino Case

The Bank of Portugal (BdP) has reiterated that paying Hélder Rosalino's salary while he serves as Secretary-General of the Government would violate Eurosystem rules. This stance comes after the Government claimed that the BdP's actions created "undesirable complexity". The bank emphasized that it can process salaries for seconded employees only if reimbursed.

A spokesperson for the regulatory body stated that European Union regulations aim to prevent expectations that central banks will cover public administration costs. This response follows the Government's statement on Monday, which held the BdP responsible for Rosalino's withdrawal from the position, arguing that the BdP’s refusal to pay his original salary did not hinder public resource savings but instead created unnecessary complications.

The controversy centers around Rosalino's salary of over €15,000, as he was appointed to the Secretary-General role but subsequently stepped down. The Government amended the law to allow the Secretary-General to maintain their original salary; however, Bank Governor Mário Centeno clarified that the BdP would not incur these costs due to Eurosystem prohibitions.

In statements to ECO, the bank stressed that for employees seconded to public entities, the responsibility for salaries and social benefits lies with the receiving entity, in accordance with existing legal frameworks. The BdP can process these payments as long as it is reimbursed, which must be stipulated in public interest agreements.

The BdP argues that any attempt to make it cover these expenses without reimbursement would violate Eurosystem rules regarding the prohibition of monetary financing, a fundamental principle of the Economic and Monetary Union. This prohibition is enshrined in Article 123 of the Treaty on the Functioning of the European Union and is also reflected in the Organic Law of the Bank of Portugal since its revision in January 1998.

Recently, the Government announced that Rosalino communicated his unavailability for the Secretary-General role, stating that the arrangement would allow him to retain his long-standing salary from the Bank of Portugal while saving the State from paying a second salary.

In light of Rosalino's refusal to assume the position, the Government indicated it would soon appoint another candidate for Secretary-General, while the Bank of Portugal will continue to pay Rosalino's current salary.

News updated at 16:49