Brussels, 13/04/2012 (Agence Europe) - Tension between Spain and Argentina caused by rumours that YPF, an Argentinian subsidiary of the joint Spanish/Argentinian oil giant Repsol YPF, suddenly took a turn for the worse on Friday 13 April, when the Argentinian ambassador was called to address the Spanish government in Madrid.
Trouble had been building up for weeks between the two, traditionally friendly, countries but has now degenerated into a diplomatic crisis, in which the European Commission has intervened, calling on Argentina to protect foreign investment in the country. The European Commission's delegation in Argentina has expressed concern to the Argentinian government, explained a Commission spokesperson, and the Commission urges all sides to seek a negotiated solution that will not endanger the working environment or economic ties between Argentina and the EU. The spokesperson added that the Commission hopes the Argentinian government will respect its international commitments to protect foreign investment, adding that the Commission stands alongside Spain in this matter.
Despite reducing its investment in YPF, of which 57.4% is owned by Spanish oil giant Repsol, the Argentinian government wants to nationalise it and this has been interpreted by Madrid as a hostile act. On Thursday, the Spanish industry minister, Jose Manuel Soria, was the first to raise his voice, saying that hostile acts anywhere in the world against Spanish companies would be interpreted by the government as hostility towards Spain. On Friday, Spanish European minister, Inigo Mendez de Vigo, sent the second warning shot, pointing out that Argentina was turning itself into an international leper. (LC/transl.fl)