Just why was Pedro Reis removed from the Ministry of the Economy?
Opinion: Chris Graeme
He was competent, had good ideas, worked hard at bringing in new overseas markets for Portuguese companies, and identified failures in the speed and distribution of European recovery and resilience funds via Portugal’s development bank Banco de Fomento, so it was a shock that the Minister of the Economy was sidelined and not reappointed.
So, the question remains as to why Pedro Reis was not reappointed to lead the ministry? What is interesting is that no minister of the Economy in Portugal has ever succeeded in completing a term in office since the April 25, 1974 Revolution, and has always fallen victim to a cabinet reshuffle.
Now the ministry is led by Manuel Castro Almeida, who admitted to the online news source ECO that “it would clearly be more desirable to have stability at the helm of the Ministry of the Economy” but reminded that “there has also been instability at the wheel of other ministries and not just Economy.” So what “instability” is he suggesting?
“We’re going through high-pressure times and there is always the temptation that when things go wrong you fire the minister.” (in other words the fact that Pedro Reis was not reappointed must somehow mean something went wrong and he got the blame).
“I think that with the exception of very serious cases or direct and personal responsibility (for something wrong) it is better for an experienced minister to resolve a problem that sack him or her, even if this doesn’t sort out the problem,” he said.
And he reminded that despite leaving before the end of his term, he was at the helm for almost four years. And before the he competently lead Portugal’s overseas investment bureau AICEP, so was certainly the right man for the job.
And it is unlikely that the decision had anything to do with a divergence of policies or technical questions at the Ministry of Finance. Just before the election, both the Minister of Finances, Joaquim Miranda Sarmento and Pedro Reis sat side-by-side in a very united front at a lunch organised by the International Club of Portugal at which the Finance minister was they invited guest speaker and stressed how hand-in-glove the two ministries worked.
One former Minister of the Economy, Carlos Tavares (April 2002 to July 2004) opined: “The Ministry of the Economy has an activity that is very often invisible in the short term, you don’t see the effects of many of the measures immediately because they often have a longer time horizon”.
But added: “I admit there does seem to be a lack of visibility about what they do there, the projects often have a very technical component, but I also think that it doesn’t always get the due attention that it should get from the press.” (A rather unfair judgement)
And concluded: “The work of the Ministry of the Economy is politically very difficult because it interferes with many rooted interests that normally react when they are affected.”
So, perhaps, therein lies the answer. Pedro Reis was simply too good at his job and shook up deeply-rooted interests as he tried to overhaul and improve the ministry. Maybe some people didn’t take kindly to him riding roughshod over interests and the way they did things and that upset the apple cart.
It kind of reminds me of a famous Russian pre-Revolutionary cartoon called ‘Ministerial Leapfrog’ that refers to a period (1916) during the reign of Tsar Nicholas II of Russia where his wife, the Tsarina Alexandra, exerted significant influence over the appointment of ministers, often replacing competent ones with less threatening individuals, some even incompetent. That’s not to say that the new minister of the Economy is anyway more convenient, malleable or less than competent. Let’s hope that’s far from the case here!
Photo: MIGUEL A. LOPES / LUSA
Copyright: © 2025 LUSA – Agência de Notícias de Portugal, S.A. Prime Minister Luís Montenegro (L) and Pedro Reis (R).
