Caixa Geral de Depositos is one of the largest Portuguese banks, and it is owned by the State. It is a profitable bank with significant market value, and the Social-Democratic Party suggested privatizing it a few days ago. The immediate goal is to raise revenue to reduce the public debt. Pedro Lains and Alvaro Santos Pereira, contributors to this blog, have written about it elsewhere, against and in favor of privatization, respectively.
This debate puzzles me. When I think of the big policy challenges in the Portuguese financial markets in the next 6-12 months, it is not privatizing the State bank that comes to my mind. Rather, it is whether or not to (partially) nationalize the private banks.
Same topic, opposite sign.