Portugal’s Biggest Employer Urges Parties to Agree on Reforms After Election

Henrique Almeida
·2 min read

(Bloomberg) -- Sonae SGPS SA, Portugal’s biggest private-sector employer, wants the nation’s political parties to ensure stability and agree on key reforms following an election that’s likely to result in a minority government.

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“It’s important, whatever the future government solution, that there is stability,” said Claudia Azevedo, chief executive officer of Sonae, a holding company that employs about 47,000 workers and operates Portugal’s biggest supermarket chain. “There’s no reason for political parties not to come together and agree on fundamental causes.”

In an election on Sunday, the center-right AD alliance won the most seats in parliament and narrowly beat the Socialists, who have governed for the past eight years. But the far-right Chega party grabbed much of the spotlight after it quadrupled the number of seats held in parliament, cementing its position as the third-biggest force.

The AD coalition on its own is well short of a parliamentary majority, which means that Portugal will likely have a minority government that may be forced to compromise on key policies to get support from other parties. Center-right leader Luis Montenegro has so far ruled out agreements with the far-right to get backing, while the Socialists have said they shouldn’t be counted on to help the AD govern.

Read more: Portugal Joins Europe’s Shift With Far-Right Support Surging

Portugal’s president has to meet the parties before appointing the new premier, which won’t happen before March 20.

“On Sunday people voted to say we are fed up with politics,” Azevedo said. “There was a cry for change.”

Some of the key reforms that a future government should carry out include overhauling Portugal’s slow judicial system, improving state schools and the national health service, according to Azevedo.

Azevedo also said the tax burden in Portugal is too high. The Azevedo family owns a controlling stake in Sonae, which holds businesses ranging from supermarkets to shopping malls.

“We have always said that we think that in Portugal the tax burden on people and companies is excessive,” said Azevedo.

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