A sign with the YPF Gas logo is seen outside a gas distributor in Moreno, Buenos Aires province, April 19, 2012. REUTERS/Marcos Brindicci
One definition of mental illness is repeating something over and over, but expecting a different result.
Perhaps that’s why, on April 16, Argentine President Christina Fernández de Kirchner announced a bill for the re-nationalization of YPF, a formerly state-run oil company with majority shares owned by Spanish firm Repsol – the same YPF she supported privatizing as a lawmaker back in 1992.
Over the past weekend, Spain hit back by boycotting biodiesel imported from outside the European Union. This is a clear shot at Argentina’s biodiesel industry, which exported around $991 million in fuel to Spain in 2011.
The decision reflects the same logic shown by President Fernández de Kirchner (often referred to as “CFK,” in part to distinguish her from her deceased husband, former President Néstor Kirchner) in the case of the Malvinas affair: “We’re only taking back what should be ours.”
In both cases, this logic seems to be based on a unique flavor of nationalism rooted firmly not in national history, patriotic fervor, economic strength or even legal precedent, but rather in geographic proximity.
In discussing the timing of the decision, CFK had told reporters, “You build history the way you can, not the way you want. History is not a straight path without stumbles and falls.”
Some would assert that the expropriation is an example of CFK trying to build history the way she wants to, anyway. The results will be clear soon enough.
Read more from guest contributor Jackie M. Briski.
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This is all I hear when I read this. hahaha http://www.youtube.com/watch?v=QzntZLHcYy0
Pa Fuera Imperialistas!
Note to foreign investors …. don’t invest in Argentina! They’ll just seize your company whenever they feel like it. A play straight out of Hugo Chavez’s book.
I mean, Spain still has a king. The worst Latin America has are dictators that reign for up to half a century (but the Castros have to croak sooner or later).
Note to foreign investors: Don’t invest in Europe. They can’t pay their bills. Argentina, on the other hand….
Spain’s monarchy is ceremonial, with no governmental power, and the king is actually the one that dismantled the dictatorship in favor of democracy. Latin America’s dictators are the real thing however lol
I understand that, Roberto. But I’m an American, so I’m a bit allergic to monarchy. Give me a choice between living in Spain or living in Argentina, and I’d choose Argentina before you could bat an eyelash. Spain, get rid of your ceremonial king and then we’ll talk.
Argentina defaulted on their debt very famously a few years ago, their credit rating is a B. Spain still has an A credit rating.
what’s wrong with the ceremonial king? in case you didn’t notice, he doesn’t run the country. and he’s a national hero for abolishing the dictatorship.
The only reason Spain’s credit rating has dipped is because that would wreak havoc in Europe, and the people who give out such grades know it and they don’t want to be responsible for sparking the beginning of the end of Europe.
rubbish … the credit ratings of Greece, Portugal & Ireland are in the toilet because they defaulted. Spain has not yet.
You’re right. I always thought that the founders should’ve made General Washington a ceremonial king for his part in overthrowing the actual one. Well, we can only dream now.
Hogwash!
Out with the greedy foreign investors. Any conscious responsible investor who isn’t looking to exploit Argentina will seize the day on fairer terms so no great loss suffered here.
Greedy foreign investors!? Lol thats just ridiculous. Its not like in the past when foreign investors forced Latin American governments to sell resource rights. Argentina willingly privatized the company in the 90s. Now they want to fund the budget gap by using oil revenues.
The only thing that will come from this is decreasing reinvestment in production and net oil production will decrease. Just look at Pemex. There nothing wrong with nationalized oil companies, after all every sovereign country can elect to nationalize its resources, but they always use revenues to solve budget problems instead of reinvesting in new tech and new oil reserves.
Only time will tell. Can’t deny that Spain was exploiting Argentina. Hey, I’m part Spanish and not Argentine at all, but things need to be fair. What happens from here on end is not ascertainable so speculate all you want. Es preferible morir de pie que vivir arrodillado
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