(MADRID) - Recent state takeovers of companies in Latin American are harmful for the region's ties with the Europeaan Union, European External Affairs Commissioner Benita Ferrero-Waldner said on Friday.

Several Latin American countries, notably Venezuela and Bolivia, have recently nationalised companies owned by European groups.

These decisions, announced "from one day to the next," raise the key question of legal certainty and were not good "because a lot of investors will lose confidence," Ferrero-Waldner told a conference here.

She said she had told Latin American officials this was not the way to proceed at a time with discussions were underway with the EU on several agreements.

The EU recently cancelled talks planned for this month on a commercial accord with the Andean Community countries -- Bolivia, Ecuador, Colombia and Peru.

Ferrero-Waldner also defended the EU's decision to end sanctions against Cuba and resume dialogue with Havana while calling on the Cuban government to free more politcal prisoners.

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