New Bank of Portugal Governor Álvaro Santos Pereira Champions Growth and Housing Reforms

Álvaro Santos Pereira Takes Office as Governor

Álvaro Santos Pereira was sworn in as the new governor of the Bank of Portugal at the Money Museum in Lisbon this Monday. He emphasized the need for policies that promote economic growth, advocating for structural reforms to achieve this, though he did not provide specific details.

Focus on Housing and Construction

In his address, Santos Pereira highlighted the housing crisis as a key area for action. He stated, "It is necessary to do more" to address the shortage of homes, urging not only the central government but also municipal authorities to play a role. He argued that reducing construction restrictions imposed by local councils is crucial, noting that these barriers are more significant than a lack of economic incentives.

Strengthening the Central Bank

Santos Pereira pledged to lead a stronger, more resilient, and open central bank, reinforcing the principle of independence that he defended during parliamentary hearings.

Endorsement from the Finance Minister

Finance Minister Joaquim Miranda Sarmento praised Santos Pereira's qualifications and career, while also acknowledging the contributions of his predecessor, Mário Centeno.

Background of the New Governor

Álvaro Santos Pereira, 53, previously served as Minister of Economy from 2011 to 2013 under Prime Minister Pedro Passos Coelho. He was the chief economist at the OECD until the end of July this year, when the government of Luís Montenegro announced his appointment to succeed Mário Centeno, the former finance minister of socialist governments.