MercoPress. South Atlantic News Agency

Spain concerned about its business interests in Argentina

Spain announced it would defend its interests in Argentina although specific negotiations belong to the private sector, said Spanish president Jose Luis Rodriguez Zapatero, following a meeting with Argentine president Cristina Fernandez de Kirchner.

The heart of the matter is the troubled Argentine flag air carrier Aerolineas Argentinas which is controlled by a Spanish company which last week sold an additional 15% stake in the company to the Argentine government. "The recent agreement ends a period of permanent speculation which was not good", said Rodriguez Zapatero when asked specifically about the airline which belongs to Spanish tourism operator Marsans group. Mrs. Kirchner and Mr. Rodriguez Zapatero met in the framework of the recent EU/Latam leaders' summit held in Peru. The official version from the Argentine side was that the Spanish companies issue "was not even mentioned in the agenda", although the Spanish president and several of his ministers publicly stated it was the issue of the bilateral meeting. Spain is concerned about the growing "harassment" against Spanish corporations in Argentina, which seem to be sponsored by the Kirchners administrations, and Aerolineas Argentinas is considered a "lead case". Aerolineas has faced ongoing labor strife (and frozen air fares) under the Kirchners and finally a few months ago the Marsans group agreed to sell part of its stock to the Argentine government and Argentine businessmen. According to the new arrangement the Argentine government share increases from 5 to 20% and another 10% is split between the company's staff and provincial governments. The discussion now is concentrated on who will hold the majority in the remaining 70%, the Spanish group or the incoming Argentine entrepreneur. "Spain has interests in Argentina, we are going to defend them taking into account each economic and social moment of Argentina", underlined Rodriguez Zapatero who even summoned his influential Industry minister Miguel Sebastián to the meeting with the Argentines to talk about the Spanish companies with investments in Argentina. Minister for Ibero-American Affairs Trinidad Jimenez revealed that Argentine president Cristina Kirchner during the meeting said she was satisfied with the agreement reached with Marsans because "it offers reliability to the deal". Ms Jimenez added that Rodriguez Zapatero said "Spain supports its investments overseas. The issue is always present in our dialogue with Argentina, although specific negotiations belong to the private sector realm". An estimated 30% of Spain's investments in Latinamerica are in Argentina. Mrs. Kirchner was at the meeting with Foreign Affairs minister Jorge Taiana, and ambassador Dario Alessandro, while the Spanish president took with him the ministers of Industry, Ibero American relations and Foreign Affairs Miguel Angel Moratinos. Bilateral relations are "excellent" and both presidents agreed to meet again in Rome next month when the UN summit on food policies, said Ms Jimenez. Anyhow both leaders will have ample time to talk about business opportunities and Spanish companies in Argentina when Mrs. Kirchner travels to Spain on an official state visit next July.