Brussels, 07/05/2012 (Agence Europe) - After the Argentinean Congress approved the expropriation of Spanish oil group Repsol's local subsidiary YPF, Spanish Prime Minister Mariano Rajoy roundly criticised the decision, accusing Argentina of “trying to conceal its own weaknesses”.
While it could be interpreted as a sign of Spain's current weakness on the international scene, “this move probably has more to do with the weakness of the one taking the decision”, that is to say, Argentina, where other US and foreign companies have also been expropriated, suggested Rajoy on the radio Onda Cero on Monday 7 May. “Sometimes one tries to conceal one's own weaknesses by carrying out supposedly forceful acts. This move creates a great deal of doubt. It is very unpleasant and investors will certainly bear it in mind (before investing in Argentina). I believe it will do much more harm to the country taking the decision than to the company affected by the decision”, he said.
On 4 May, the Argentinean Congress officially approved the Bill to expropriating 51% of Repsol's subsidiary YPF. A week after the Senate approved the move, the lower House passed President Cristina Kirchner's Bill by 207 votes to 32, with six abstentions. The party in power holds a majority of seats and enjoys the overwhelming support of the opposition on this matter. The Spanish oil company and Argentina will now confront one another in international courts.
Spain suffered a further blow in Latin America last week with the expropriation by Bolivia of the local subsidiary of Spanish electricity grid operator Red Electrica. (EH/transl.rt)