MercoPress. South Atlantic News Agency

Spanish investors “delighted” with Chile.

Chilean president Ricardo Lagos on an official visit to Spain said the controversy between Spanish investors and members of his cabinet was over and emphasized it was part of the “rules of the game” in a democracy with open markets.

President Lagos made the remarks after meeting with representatives of the main Spanish companies with interests in Chile, among them most privatized public utilities.

"The controversy corresponds to a democratic country where you have regulators and regulated companies" stressed Mr. Lagos adding that what must be preserved "is the very long term relation with Spain and we welcome Spanish investments".

The controversy burst out a week ago when the main Spanish investor in electricity generation Endesa, complained about the energy crisis anticipating a freeze in further investments and warned about a possible "Argentinization" of Chile.

But Finance Minister Nicolas Eyzaguirre abruptly replied that "the door was open" for those investors not satisfied with regulations" in Chile.

"Spanish investors have told us that they are pleased with our stability, our transparency, our economic policies which allows them to make long term plans", said President Lagos in Madrid.

Endesa president Manuel Pizarro assured his company would continue to invest in Chile, a country where "the only risk is the normal risk for any investor, there's no uncertainty, the legal system works and protects private property and we're delighted to be in Chile".

Telefonica president Cesar Alierta said his company's investments are evidence of confidence in the Chilean economy and the recent controversy is "no more than an anecdote".

"The meeting with President Lagos has been very positive and we feel motivated with the investments we've done and planning for the future", added Mr. Alierta who announced that "facts are what matter and we are investing an additional 1,25 billion US dollars in Chile".

President Lagos met with King Juan Carlos and Spanish President Jose Luis Rodríguez Zapatero who said that "our relations (with Chile) are more than economics; we share political values and have common social and cultural values".