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What you say is, if his Italian citizenship was acquired when he was a minor (<18 years old), that's the same as the kid of a family who had emigrated/refugee status to Italy. I don't agree with taht Danny, at least I regard it as a huge stretch to make. I think there's a difference re the kids status with the child of immigrants and how his eligibility is perceived by FIFA.
When a family emigrates to a new country, the children's status changes, I don't know the details of how it changes but there is a stage, once past, that the kid is regarded the same as one born in that new country. Maybe is has something to do with refugee. status. Therefore, say a kid is aged 12 when his family arrives to Ireland, the family gets permanent residency/nationality after 2 years, the kid gets Irish nationality. The kid from now on is regarded the same as Irish born, he can go to England at the age of 16, become a red hot footballer and declare for Ireland under article 5, without having to satisfy the full 5 years residence requirements of article 7.
Imo, Osvaldo's parents applying for Italian citizenship on his behalf from Argentina, is not the same and he would be regarded as assuming a new nationality, even though he was a minor.
Perhaps. I think we'd require further information on the status of respective citizens and the respective natures of their citizenships, without which we can only make educated guesses as to how and which regulations actually apply to them.