Daily Archives: May 3, 2012

Nationalization brings harsh Spanish press criticism towards current Bolivian president; USA is “concerned”

ANF reports Spain repercussions and EFE reports on USA reaction; both published in Pagina Siete:

ANF

The Spanish press released harsh criticism on Wednesday, about the Government of Evo Morales to the nationalization of the conveyor of electricity, in the hands of the Spanish electricity network in articles and editorials calling that decision as “spoliation” and placed it in the “unfortunate wake” of the similar measure took by Argentine President Cristina Fernandez with Repsol.

“We have a case of spoliation of property with owners and shareholders, based on unsustainable rhetoric in terms of mere economic rationality or contractual legal certainty.”

“Morales and his Government have acted outside the rules ordering respect for property and the international legal order”, commented the newspaper “El País” in an editorial entitled “Morales also spoliates”.

“The announcement and the explanatory statement of the expropriation rival in extravagance (?)”. Not the Bolivian President has deigned to offer a single industrial or economic reason for his decision (?) and uses the tagline that there has been inadequate investment. “Rhetoric that conceals a response or gesture chauvinist to the growing disaffection of its political support and discontent in the population”, he added.

“Unfortunately – continued-, Latin America extends the idea of consolidating charismatic regimes at the expense of other countries or private property.” Morales has interpreted the expropriation of YPF (Argentina) as a sign of weakness of the Spanish Government. Although it caused some international protest, not a single measure that punished the expropriating really has taken [place].

The Madrid daily said the economic damage of the decision of Bolivia is lower than the YPF Argentina, but however in the Bolivian case, there is a “significant difference”, the electric network company is owned also by the State.

“The Government is directly concerned.” We hope to respond now in a deterrent manner. “Amid investment crucial in several Latin American countries,” he stressed.

For its part, the newspaper “El Mundo” stated that “the new expropriation adds pressure to the Government and suggests that the response to Kirchner by YPF has not been adequate.” “Because if Argentina would have immediately noticed the punishment – also within international – for its confiscation, is sure that Morales would have thought his decision yesterday”.

“The Executive was negligent yesterday to say only that it was? perfectly informed? and that? studied? the Morales decision. A reaction that contrasted with the public appearance of two Ministers to explain the reaction to the expropriation of YPF.

“Red Eléctrica is certainly smaller than the oil, but the breakdown of the principles of the law is the same,” he added. According to the conservative newspaper “La Gaceta”, the “history repeats itself” with Evo Morales and “abuses of power against Spain continue”. Referring to the recent nationalization of YPF-Repsol in Argentina.

http://www.paginasiete.bo/2012-05-02/Economia/Destacados/prensa-espanola-critica-a-EVo.aspx

EFE

The U.S. Government was today “concerned” by the decision of President Evo Morales to expropriate the firm energy conveyor (TDE) to the Spanish Electrical Network (REE) and considered that “it tarnishes the investment climate” in the country.

“We are concerned by the decision of the Bolivian Government to nationalize TDE, happening shortly after the Argentine announcement (of expropriating the actions of the Spanish Repsol YPF),” said the spokesman for the State Department, Mark Toner, at his daily press conference.

“This type of action against foreign investors really tarnishes the investment climate, in Bolivia, in Argentina, or anywhere else. That’s our concern,” the spokesman concluded.

The State Department spoke in similar terms on April 18, following the announcement of the expropriation of 51% of the capital of the oil company YPF of 57.4 per cent owned by Repsol, when Toner urged Argentina to “normalize its relations with the international financial community”.

The reaction of United States, the first investor country in Bolivia, is similar to that expressed today by the European Commission, which today also expressed their “concern” for the expropriation.

The Bolivian Government confirmed today that it will indemnify REE by assessing their investments and liabilities in the subsidiary TDE, whose expropriation has justified arguing “inadequate” investments in the Bolivian company, which totaled 81 million dollars in 16 years.

REE, 99.94% of the shareholding package of TDE, which acquired in 2002 has indicated its willingness to an “amicable” settlement with La Paz for its part.

http://www.paginasiete.bo/2012-05-02/Planeta/Destacados/EEUU,–preocupado–por-la-decisi.aspx

Long gone the days where Laws and Agreements were honored… and we are in the 21st century… it is embarrassing to be citizen of a country that does not follow civilized coexistence; just bad politics to divert attention of the masses, in an attempt to continue in power.