Portugal to drop veto right in 3 key firms

Portugal said Tuesday it will give up the right to veto decisions deemed of strategic importance to the national interest in three key companies.

The government’s ‘golden share’ in Gal Energia, Energias de Portugal (EDP) and Portugal Telecom will be dropped in accordance with the terms of the debt rescue package negotiated earlier this year with the European Union and International Monetary Fund and the EU.

Finance Minister Vitor Gaspar said the cabinet approved the decision to abandon its veto rights, noting that the European Court of Justice in Luxembourg had already ruled the ‘golden share’ holdings to be incompatible with the free movement of capital and free markets.

The three companies were once publicly owned but have been partially privatised.