So it seems the key issue is that we are talking about an estrategic activity.

I don’t know how estrategic would you consider these activities:

* all the software in spanish companies is bought to Microsoft
* most of the turbines in our new power plants are bought to General Electric
* the leading company in PC equipment in Spain is IBM, and the other ones are not spanish, either
* more than half of our planes must be Boeing, I guess
* Most of the oil we import comes throug american companies
* I’d bet american companies play a significant role in our pharmaceutical o biogenetical sectors (no local company, that’s sure)
* the only spanish car manufacturer sells about 15% of the market, the rest is served by foreign companies
* 85% of the total energy consumed in Spain is imported from other countries
* in the UK, around 80% of consumers buy their electricity to companies based in other countries
* in spanish energy sector, the first company was bought by an italian one last year, the fourth one is portuguese, and nowadays the third one is about to be sold to a french one.

In my opinion, even in estrategic activities, we should not care where the capital comes from, we just have to strengthen the operating rules and supervising commissions’ job.

Thank you for your comment! I do believe you’re the first reader (and commenter) of this blog who is from Spain. I deeply appreciate that you’ve taken the time to leave a comment.

Your comments make a great deal of sense. I should make it clear that my position on foreign ownership of infrastructure is in the minority. Most of my fellow citizens (and most of my friends!) disagree with me on this point and in fact have no problem with Iberdrola’s potential purchase of Energy East.

Your argument that energy companies really can’t make a move without approval and oversight from the Public Service Commission is a good argument–and true. It’s also true that anyone can be an “owner” by purchasing stock–and stock in energy companies is owned by peoples from around the world.

My continuing concern is that the major decisions of the company will be made by people other than those who have their citizenship in and owe their allegiance to this country. Having someone run an energy company is, to me, different from a soft drink manufacturer. Bad decisions, or decisions that can harm a great many people, can be made by those who own infrastructure. It is not the same with cameras or soft drinks or cars or other consumer goods. Those items are not key to a country’s defense and the welfare of its citizens. Infrastructure is key.

I will restate that I have deep respect (and fondness) for Spain and other European countries. I don’t believe I am in any way xenophobic. I have a number of friends and colleagues from other countries, ethnicities and colors. I further recognize the global nature of our economy and how we are all intertwined. And that America owns operations in countries around the world.

But I continue to make an exception for ownership of key infrastructure. My gut tells me we should not let management and ownership of key infrastructure be controlled by non-Americans, as much as we like them and as much as we respect them.

Once again, thanks for commenting. I suspect in the end Iberdrola will purchase Energy East. There just aren’t enough voices objecting. So this whole discussion will become “academic” as we say.

Best wishes to you in old Europe from those of us in the New World.

Jim

Nowadays we live in a global world, with global markets, at least there is a majority of countries who believe in the same rules for their economy, their politics, their foreign affairs… and I sincerely thought Spain and the United States were together in that group of countries.

When we talk about energy infrastructures, one thing that is quite clear here in Spain (and in Europe), is that the operation of these infrastructures has nothing to do with the property, with who is the owner. There are rules, and there are independent commissions, who are in charge of such things, and who care for a correct operation of such goods. And in case that any owner tried to operate against those rules, these commissions would act to reconduct this behaviour, or even remove the owners from the property of the firm. So we don’t need the owner to be a local firm as a condition for a good operation of the service.

But this is only a question about the way energy markets work. And there is something else in Jim’s comment that really sounds uncomfortable and “out of time” to anybody here in Europe, the question about “the property moving out to another continent”. If you look at the owners of our firms here in Europe, you’ll find capital from almost every country in the world, most of it from the United States, let me say. Nothing to say about it, if these capitals respect those rules I mentioned in my first paragraph about politics, foreing affairs, democracy, and the rules in my second paragraph, about the operation of each local market. If I take a look at the capital of the companies from which I buy most things (my car, my food, my gas, or my cola drink), it won’t be easy to find spanish money in it. But I thought this was far from being a problem nowadays.

In this case of Iberdrola, please check the composition of its capital, most of it is in US banks and funds’ hands, so maybe in the end Energy East gets back to american owners after being sold to Iberdrola. Or maybe not, companies are bought and sold every day at the stock exchanges, don’t forget it. Sold to Iberdrola or not, you can go to your agent, give an order and become the owner of (a part of)that energy infrastructure.

That is a global world with a global market, and I couldn’t expect you americans to disagree about it.

Best wishes from the old Europe.

Yes, I am concerned with the security of our country, as I believe most citizens are. I am against amnesty for illegal immigrants. I believe your point is, “why don’t you expend your energy writing and lobbying against illegals rather than the sale of Energy East?” To which I would respond, they are both important issues and both issues deserve our attention.

I have no ill feelings against Iberdrola per se. I would feel the same if it where any foreign-owned company. America’s infrastructure (power companies, roads, ports) should never be under the control of someone who may one day be unfriendly to this country.

Let me ask you: Would you object to the sale of Energy East if it were to an Iranian or North Korean company, knowing of those country’s hatred for America and our ideals? It seems to me those who are our allies today may not be so tomorrow. That is why I object to this sale.