The Council of Ministers approved the extension of the deadline for conclusion of the TAP privatization process until the end of the year, extending the deadline by another three months. The Portuguese Executive justified the change in schedule with the need to guarantee all necessary legal and regulatory procedures for the conclusion of the process.
According to the analysis, the decision reflects three chronic problems in the management of strategic processes by the Government. The accusation is that the Executive sets calendar targets thinking about immediate political dividend, ignoring the complexity of subsequent legal steps, such as regulatory approvals and the "green light" from European competition authorities.
The article warns that each deadline extension sends international investors and competitors a message of hesitation. In a privatization process, whoever gains time is usually the buyer, who takes advantage of the prolongation to press higher their negotiating power and renegotiate considerations, knowing that the Government becomes increasingly "backed against the wall".
The author concludes that stretching deadlines generates noise in the company's daily operations and prolongs strategic uncertainty, as well as the strain on workers and customers. It also mentions that other opportunities emerge in the market, such as Easyjet, and questions whether the best proposal will truly be the one the Government intended.
