MercoPress. South Atlantic News Agency

EC and Italy call on Argentina to fulfil its international commitments

Italian PM Mario Monti: ‘damaging’ decisions that put at risk diplomatic liaisons

European Commission Vice President Antonio Tajani addressed Argentina's plan to expropriate 51% of the 57.43% share-package Spanish ran Oil Company Repsol owns, during a speech at the European Parliament on Wednesday. From Rome Italy also voiced its concern with events regarding YPF and trade restrictions.

He urged Argentina today to “fulfil its international commitments” and reiterated European Union concerns over President Cristina Fernández plans to takeover the company.

“This announcement brings legal uncertainty to international law and can seriously affect investments in Argentina also rising doubts over the country’s stability,” Tajani explained.

He went further to announce he was cancelling a trip to Argentina to discuss YPF’s future. “Our main goal was to boost the bilateral industrial cooperation. That would have brought benefits for both Argentina and the European Union,” Tajani remarked.

Likewise Italy’s Prime Minister Mario Monti expressed concern over Argentina’s plans to seize control of oil company YPF and also voiced his discontentment over trade barriers set by the Argentine government to protect local industries.

Monti said he considered the YPF seize decision to be “damaging” to the relations between Rome and Buenos Aires and that it could potentially “ put in risk and dishearten” diplomatic liaisons amongst the two nations.

According to international media accounts, the premier wrote directly to President Cristina Fernandez to express concerns over the takeover, also voicing worries over the government’s trade barriers which are affecting Italian electric company Enel.

“We are deeply concern over the measures taken by the Argentine government to restrict imports through trade barriers,” he reportedly wrote.