Lisbon in talks with airline holdings to re-privatise TAP

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TAP privatisation left hanging with PM’s resignation

The unexpected resignation of Portuguese Prime Minister António Costa on November 7 has put at risk the privatisation of TAP Air Portugal (TP, Lisbon), the local newspaper Expresso and the news agency Reuters reported.

Costa submitted his resignation after police raided his official residence amid a corruption probe of his inner circle related to projects linked to lithium mining, green energy, and a data centre. He said he was “surprised” to learn about the case and denied any wrongdoing, but he explained that the seriousness of the matter was “incompatible with the dignity of the office of prime minister,” forcing him to stand down.

The current government must now act only in a caretaker role until the president of Portugal, Marcelo Rebelo de Sousa, makes a decision on whether to stage elections or allow the governing Socialists to form a new government. Costa said he would remain in office until he is replaced, but it is up to the president to decide from which date he exits.

The political crisis means that “many of the...

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Portugal's president vetoes TAP privatisation law

The pending semi-privatisation of TAP Air Portugal (TP, Lisbon) has hit a glitch with Portugal's President Marcelo Rebelo de Sousa having vetoed the required decree, citing concerns about a lack of transparency in the process, which he wants the government to address forthwith.

In an October 27 letter to Prime Minister António Costa, Rebelo de Sousa requested prompt clarification on three questions in particular and returned the law approving the privatisation process to the government without promulgation, according to a statement on the President's website. He said responses received from the government by October 26 had been unsatisfactory.

In a brief response, the Prime Minister noted the President's concerns, adding they would be"duly considered".

The three points of concern raised by Rebelo de Sousa are:

• The state's future ability to monitor and intervene in a strategic company like TAP, particularly if the sale involves more than 51% of the company's control, as there are no special provisions made in the decree for the state's role in subsequent administrative decisions;
• The decree allows TAP to...