Portugal's Council of Ministers approved on April 9 the draft Law on the Organization and Process of the Court of Auditors, reforming state financial control and the model for oversight of public contracts to speed decision-making and boost public administration effectiveness. Deputy Prime Minister and Minister for Reform of the State, Gonçalo Saraiva Matias, described it as a paradigm shift in how the Public Administration operates, stating that Portugal does not need less control but better control. The measure replaces a model focused on ex-ante oversight with a system based on concurrent and successive controls, more demanding and effective. The exemption of prior approval for acts or contracts under 10 million euros will cover more than 90% of procedures, shortening decision times and unlocking public investment. The law clarifies the Court of Auditors' jurisdiction, reinforcing the separation of powers and limiting its intervention to financial legality. The reform also strengthens internal-control mechanisms, validated by the General Inspectorate of Finance (IGF), and updates the regime of financial accountability to depend on intent or grave fault, promoting more responsible decisions without compromising the Administration's ability to act. The government presents the reform as part of a state modernization strategy oriented toward efficiency, responsibility, and timely decision-making, ensuring higher quality in public resource management and alignment with European best practices. Key changes include: restructuring the Court of Auditors and its sections; adopting best European practices; noting Portugal as an isolated case in Europe regarding ex-ante oversight by the TdC; aligning financial accountability with recent reforms in France and Italy; changing how judges are appointed; recruitment criteria for the 1st and 3rd sections similar to those for judges of the Supreme Administrative Court; guaranteeing respect for the separation of powers; clarifying jurisdiction to bind the administration without judging its convenience; reducing normative indeterminacy; clarifying vague formulas; changing ex-ante oversight; introducing an exemption for acts/contracts under 10 million euros; creating an exemption mechanism for entities supervised with reliable internal controls; strengthening internal control systems; adopting reliable internal decision-control systems via government decree and IGF opinion; revising the regime of concurrent and successive oversight; potential recruitment of more judges; updating the regime of financial accountability; liability based on intent or grave fault; creation of an Advisory Council; introduction of external members to the Court at certain strategic reflection moments.
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