Monday, April 16, 2012

Patria Socialista!

President Cristina Kirchner, a wise Latina, has upped the stakes for our own Peronist president in this bold move:
BUENOS AIRES—President Cristina Kirchner, in a move that marks a watershed in expanding the state's grip on the economy, said she will send a bill to Congress to nationalize Argentina's largest oil-and-gas company, YPF SA...

Under the proposal, which declares the petroleum industry of "national public interest," Argentina's federal and provincial governments would take 51% of the company, now majority owned by Repsol YPF SA of Spain. The move is sure to be approved in Argentina's Congress, where the leftist Mrs. Kirchner's governing Peronist party holds a majority.

Initial indications were that government would take its stake entirely out of Repsol's shares, which would leave the company with roughly 6% of YPF, down from 57%.

The nationalization marks the culmination of a monthslong battle between YPF and the Kirchner government. The administration blames YPF for low production that has forced Argentina to spend heavily for imported energy, at a time when it is enduring a scarcity of dollars due to capital flight.
Capital flight out of Argentina? Why would there be capital flight when they're trying so hard to Win The Future?

1 comment:

ligneus said...

What a puzzle it is that such stupid people like Kirchner and Obama can make it to be leaders of their countries.