GM Here To Stay

On June 2 several prominent Argentine business groups asked congress to revoke its late 2006 approval of Venezuela's membership of the regional trade group Mercosur, which was thought to be in response to President Hugo Chavez's recent nationalisation of three Argentine steel companies. This has also stoked fears that Argentina President Cristina Fernández, an ally of Chávez, may undertake her own nationalization drive if the government is successful in mid-term elections on 28 June. The low level of policy continuity is reflected in our short-term political risk rating, which stays at 52.7 this month.

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