Overview

• Portuguese Prime Minister Antonio Costa resigned amid a corruption investigation into alleged irregularities in handling lithium mining and hydrogen projects in the country.
• Costa's decision to step down has sparked a political crisis, with the national PSI 20 share index falling and the possibility of fresh elections being called.
• The corruption probe has also raised concerns about the derailment of key investments and projects, as the government is now in caretaker mode.
• The investigation includes looking into concessions awarded for lithium mines and hydrogen production, with five people, including Costa's chief of staff and a business consultant, reportedly detained.
• Green energy investments requiring European Union funds and the privatisation of airline TAP are among the projects at risk due to Costa's resignation.
• With Portugal being the largest producer of lithium in Europe, the investigation into alleged illegalities in its mining projects could potentially impact the green energy sector in the continent.