A Diplomatic path for Argentina and EU
With the
agreement to find a legal avenue out of the crisis over the to be expropriated Argentinian
,Spanish-owned energy company YPF, a crisis has broken out between Buenos Aires and the major powers. This must
be sized on as an opportunity by EU, which has long both neglected or perhaps
even mismanaged its relationship with Latin America.
There are policy failures and business alliances being forged on both sides, and clearly also ruffled feathers in both Europe and Latin America. And so a need has risen to find a
balanced solution out of what will otherwise descend into sanctions and then a
transatlantic trade war. Spain has thus
raised the need for a joint plan to be hatched between EU and Spain. Clearly,
the need for EU has never been greater than before in Latin
America. And so, this is José Barrosso’s hour. Much is at stake from this move. But how can a
situation of reciprocal vulnerabilities best be turned into a mutually
acceptable EU-Argentinian Action Plan, which plays on each party’s strengths and lead to progress and gain for
both shores of the Atlantic?
Here are
some of the elements:
§
Restore the YPF-share to Repsol’s investors under a swap agreement.
§
Insist
on a firm and realistic plan for Argentina’s return to financial markets is hatched in
cooperation with the EU & IFI.
§Get
a Cut in the Falklands deposit assigned to
YPF. Study plans for a pipe-line to the mainland with a partner of Buenos Aires’ choice.
§
Adopt
public policies, allowing investments in production capacity, and think twice about how to invest in the
development of social capital.
§
Ask
Repsol to invest in a highway, connecting Bolivia
to a deep sea-habour in Northern Chile – Antafagusta – so
that seccessionist claims, state policy and interests of the Bolivian middle
class can be put into harmony.
§
Ask
Brazil
to connect you with an investor, interested in building either hydro-power in
the borderlands or a nuclear power station. The Chinese are keen to enter the
market.
§
Form
a Shale-Gas-subsidiary of YPF-Neguen Oil, into which the Argentinian state may then
take a stake. Ask Shell to be a lead partner in the consortium.
§
Scrap
Fuel subsidiaries, and stop creaming the profits at the pump. Adopt an energy
policy-mix, allowing for investment in Renewables: Wind, Sun & Ethanol.
§ Arrange a
Chile-Argentina Forum for Business, Political & Civil Society Leaders.
§
Ask
Mercosul to review Regional Infrastructure projects and their financing in
coope-ration with IFI, inclusive of a BRIC-bank should it gain traction.
§
Review
Institution-Building-needs in Exports and Investments agencies. Work with EU,
the US
and the Asian business partners.
§ Consider Merger of Repsol-ENI.
