#EmbraceSpain XVI: “Soft Brexit” as a consensus alternative
The risks of a hard Brexit could risk the bullish tendency of the Spanish and British economies. The soft alternative could imply more possibilities for consensus.
The commercial relations between Spain and the United Kingdom will be marked in 2017 by the Brexit although in the medium term it will not lose intensity. In this sense, the celebration in Madrid of Spain Investors Day (which had the presence of the King), was aimed at attracting foreign investment and promoting the Spanish capital as a European financial center.
For this purpose a hard Brexit would be the less ideal option because it could tighten the relations between London and the rest of European partners. In this regard Philip Hammond, Chancellor of the British Treasury, stated that the United Kingdom would not be an obstacle either to the European economy or to the project of community integration.
However, British diplomacy has diversified its investment options in other countries such as the Gulf, especially Qatar, a country with a strong economy and offering great opportunities for business and investment in markets such as real estate.
Regarding Brexit and its implications we have started the year with great activity, from our firm Del Canto Chambers in the organization of #BrexitOpportunity, a debate together with the newspaper El País to be held in Madrid and London in the coming months of February and April, in which we can count on the participation of the British Chamber of Commerce in Spain and the Spanish Chamber of Commerce in the United Kingdom.
Also, along with our partner Encarna Castillo, this week we have launched a new publishing company: Trampoline Publishers. “We move the culture, the struggle against oblivion, equality and the perspective of # gender, the demands of our century …”, exposes Encarna as signs of identity of the publisher. Books on Memory and identity, equality, gender … Trampoline will also organize cultural activities around each title published between Madrid, Barcelona and Cordoba. In this last city, the digital medium Cordopolis echoed the creation of our publishing house.
In addition, we also attended, in the company of the Communication and Gender Agency, the conference “Journalism for Women”, organized at the Faculty of Information Sciences of the Universidad Complutense de Madrid (UCM) on the role of women in newsroom media.
The speakers included Magda Bandera, director of La Marea, Montse Domínguez, Huffington Post, Cristina Fallarás of Diario 16, Ana Pardo de Vera, director of Público and Nuria Varela, director of the publishing house Hotel Papel.
On the other hand, the Communication and Gender Agency has broadcasted the call of the Women’s March on London, a demonstration in London next January 21 (parallel to another organized in Washington) to protest against the offensive statements for the women president-elect Of the United States, Donald Trump during the presidential campaign last November 2016. The Agency will attend this march as a member of the Women’s Equity Party (WEP)
In Spain the economy has started 2017 with good results, specifically, investment banking and debt issuance have reached unprecedented figures having closed 2016 with a growth of 3.3%. As for the real estate sector, house prices are expected to increase during the year to 5%, while in the UK the year also ended with home price increases of 6.5% during the year. month of December.
On the other hand, in the tax area, in Spain the week has been marked again by the floor clauses and the claims model. The government intends to introduce a system that will avoid collapsing the courts, streamline processes and ensure prompt recovery of returns within a maximum of three months.
This process not only has legal implications, by the number and the type of litigation with which the amounts collected by soil clauses are claimed, but also due to the different ways of recording the collection of said amounts in rent declarations.
In addition, taxpayers will also have to adapt to the new tax changes introduced in corporate tax and in the IBI by the government, which came into effect on New Year’s Day, with a Royal Decree-Law that was approved in December of the past year.
When it seems that the good progress of the British and Spanish economies could continue to improve during this year, the economic key to ensuring the permanence and progress of the UK’s bilateral relations with Spain (and the other European partners) is that of a Soft Brexit that does not disappoint more in the wound of the abandonment of the European Union.
The maintenance of good relations (economic and cultural) between both countries, above Brexit, is the reason why we work with the campaign #EmbraceSpain from our blog and social networks (Twitter and Linkedin).
Xavier Nova (@xavinova)
Director of Del Canto Chambers