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Spain steps up the rhetoric to try and cool the Argentine government's moves to take control of...

Spain steps up the rhetoric to try and cool the Argentine government's moves to take control of oil giant YPF (57.4% owned by Spain's Repsol REPYY.PK). Hostile gestures towards Spanish companies will be considered "hostility towards Spain," says Energy Minister Soria, adding such actions would have "consequences." YPF -3.5%, Repsol -4.1%.
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Comments (5)
  • wyostocks
    , contributor
    Comments (9023) | Send Message
     
    Is it just me, or do others see a growing spread of protectionist policies cropping up around the world?
    13 Apr 2012, 12:16 PM Reply Like
  • Tack
    , contributor
    Comments (14397) | Send Message
     
    Argentina isn't protectionist; it's desperation from the usual massively-failed socialistic policies.

     

    Argentina has imposed price caps on oil to pander to the public, so that's curbed all incentive to explore and produce more oil. Consequently, there's a shortage, requiring them to import foreign oil at high prices, which is then sold to the masses at low prices. So, then, the desperate Kirchner blames YPF for their own failings (sound familiar?) and threatens nationalization.

     

    Obviously, this will not end well for any of the parties. It's evident enough that that's already foreseen by Kirchner, as she has been making noises about re-invading the Falklands, a sure diversion attention from home problems, pointing the gullible public toward an outside bogeyman.
    13 Apr 2012, 12:24 PM Reply Like
  • dieuwer
    , contributor
    Comments (2561) | Send Message
     
    Looks like Argentina wants to pick a fight with the EU (Britain, Spain). War with Europe means war with NATO. Good luck Argentina. You'll need it.
    13 Apr 2012, 12:19 PM Reply Like
  • wyostocks
    , contributor
    Comments (9023) | Send Message
     
    "War with Europe means war with NATO."

     

    Don't bet on it.
    13 Apr 2012, 12:36 PM Reply Like
  • dieuwer
    , contributor
    Comments (2561) | Send Message
     
    Of course, easier solution would be to hit Argentina with sanctions. Cut off oil, international bank transfers (SWIFT), etc.
    13 Apr 2012, 01:08 PM Reply Like
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