“How does this fit together into the decline in Portugal’s productivity? For maximizing efficiency and welfare, there is only one thing worse than a public monopoly: a government-protected private monopoly”
It fits, is the usual christo mafia monopoly logic of perpetuation of cathedrals in the desert, privatizations are good to become partners of ‘more efficient’ systems, but in the parsonage privatizations are always affected by conflict of interest of the usual christian mafia power gig.
In so, for the ones (as many others within the PIIGS, you are not alone,) the skim to protect the usual ‘caste’ has taken places into two different forms, ‘the Portugal method’ to make a public monopoly into a private monopoly, in order to grant the christo mafia continued benefits, and the Greek model, to get the privatizations handled by a usury leaches banksters predatory cartel (AKA racket,) also in order to grant the christo mafia continued benefits, some countries (like Italy,) even did ‘both,’ in ‘both’ ways, since Italy is a Christos Marxist talebanate.
The right way to privatize would have been to “merge” into major players, at EC level possibly, looking in that direction it appears trivial for instance the merging of Portuguese Airlines into ‘any’ of the Euro groups, (Lufthansa, Air France – KLM, or British,) but certainly something good for Portugal, (as in Italy and Greece,) is not so appealing to the christo mafia running our countries, hallelujah.