Portugal's Prime Minister Antonio Costa has stepped down from his position. Recently, police conducted a raid on Costa's residence in connection to allegations involving the green hydrogen project and lithium mining scams. As a result of the police raids, Costa's chief adviser was apprehended.

Costa faced a registered case and an ensuing investigation, prompting his resignation as Prime Minister. Despite maintaining his innocence, Costa asserted that he will not return to the Prime Minister's role, irrespective of the investigation's outcome. President Marcelo Rebelo accepted Costa's resignation amid these developments.

Simultaneously, Rebelo revealed the initiation of the Parliament dissolution process, with no official election schedule announced yet. Speculation suggests that socialists may form a new government under a different leader. Under Antonio Costa's leadership, Portugal experienced rapid economic growth, with a thriving tourism sector and increased investor interest.

Having been the Socialist prime minister since 2015, initially leading a coalition and later heading a minority government, Costa defied expectations in the 2022 elections, securing an absolute majority for his party in parliament.