Tuesday, April 17, 2012

Barroso 'seriously disappointed in Argentina'

European Commission President Jose Manuel Barroso said today he expected Argentina to uphold international agreements on business protection with Spain over its plan to take over the Argentine unit of oil major Repsol.

“I am seriously disappointed about yesterday's announcement. We expect Argentine authorities to uphold their international commitments and obligations, in particular those resulting from a bilateral agreement on the protection on investments in Spain."

Argentine President Cristina Fernandez unveiled yesterday plans to take control of YPF, in which Repsol holds a share, drawing swift warnings from key trade partners.

"We emphasise the need for mutually agreed solutions which do not harm the business environment," Barroso told reporters.

YPF has been under intense pressure to boost production, and its share price has plunged due to months of speculation about a state takeover.