Portugal confident EU will approve TAP rescue plan by Christmas

The Portuguese government is confident the EC will approve a E3.2b restructuring plan for the ailing airline TAP by Christmas and is preparing to inject more funds, Finance Minister Joao Leao said on Thursday. "The process is in its final phase. We are confident, we expect that it can be approved by Christmas," Leao told Reuters. If Brussels rejects the plan, the company, which is 72.5% controlled by the Portuguese state, would have to immediately repay rescue loans already provided by the state, which would lead to its insolvency. EU antitrust regulators have been examining since mid-July whether the plan, which involves around 2,000 job cuts and pay cuts of up to 25%, is proportionate and complies with state aid rules, and whether it affects competition.Out of the E3.2b rescue package requested by Lisbon, the government has already lent the airline E1.7b. Leao said he expected to lend TAP "500 million euros this year and then around 1 billion euros next year." In May, the European Union's second-highest court upheld Ryanair's fight against a E1.2b rescue loan TAP received in 2020 with the EC's blessing, on the grounds that the Commission failed to justify the huge cash injection. <br/>