#EmbraceSpain XVIII: The British Parliament as Brexit supervisor
The British Supreme Court rules that Brexit must be signed off by the UK Parliament while in Spain, floor clauses mark the legal rhythm and unemployment drops to levels of seven years ago.
This week at Del Canto Chambers, the floor clauses in Spain, and the sentence of the British Supreme Court ruling that Parliament must supervise the Brexit activation in the United Kingdom, have marked our information agenda.
In addition, in an article on the Tax Precision blog, our Managing Partner, Leon Fernando Del Canto, advocates for a professional ethics in the field of international tax advice, as a means to effectively fight tax evasion practices.
Leon Fernando Del Canto also attended, together with our partners at the Communication and Gender Agency, the Women’s March in London, a demonstration against the sexist policies announced by the US president, Donald Trump, held in parallel to the one held in Washington.
In the United Kingdom, the activation of TEU Article 50, the subsequent negotiating process and the ratification of the future EU exit agreement, will have to be signed off by the British Parliament. The argument is that, since this chamber decided on the incorporation of the United Kingdom into the European Community back in 1972, it retains the right to authorize the exit.
In this regard, the United Kingdom will have to reshape its entire legal, political, economic and diplomatic framework. Thus, the prime minister, Theresa May, presented a new industrial strategy, which large British companies liked. In addition, she met with US President, Donald Trump, to weigh up a trade agreement.
In the framework of our #Embracespain campaign, we continue holding the #BrexitOpportunities breakfasts, together with the Spanish newspaper El País. The presence of Lord Mayor Alderman of the City of London, Andrew C. Parmley, has been confirmed for the breakfasts to be held in April.
In Spain, and on behalf of our Firm, I attended the Burns Night or Burns Dinner, a traditional Scottish celebration commemorating the life of Scotland’s most famous poet Robert Burns (1759-1796), organized by the British Chamber of Commerce in Barcelona. This endearing evening, in which we enjoyed the Spanish and British cultures, was attended by the UK Ambassador to Spain, Simon Manley, among other personalities.
Continuing with the celebrations, Del Canto Chambers was present at the commemoration of the 68th anniversary of the Republic of India, organized by the Embassy of India in Spain and chaired by the newly appointed Indian ambassador to Spain, Venkatesh Varma.
On the other hand, from the legal point of view, the Spanish government approved an extrajudicial procedure for banks to start handing back the money from the floor clauses to their clients. However, even though the profits of Spanish banking sector will fall by 10.6% due to the application of the CJEU sentence, this new procedure is really a life-saving for the banks, as it provides them the possibility to negotiate with the client the amount to be returned and, therefore, the option of disbursing less money for the floor clauses than they should.
In addition, the courts, both national and international, started to approve the refund of other unfair clauses, such as early maturity clauses, or mortgage formalizing costs, as well as, in the case of municipalities, the so-called Municipal tax (Tax on the Increase in the Value of Urban Land -IIVTNU).
From the economic point of view, the Spanish government managed to place 2,685 million Euros in short-term bills and the unemployment rate fell to 18.6%, the lowest value in seven years, according to the Survey of Active Population, published by the National Institute of Statistics (INE).
The Spanish economy keeps improving and, in the UK, Brexit will need the supervision of the Parliament. Relations between the two countries, and with the other European partners, must be based on stability and on a clear definition of the game rules to ensure fruitful and consensual negotiations.
Xavier Nova (@xavinova)
Director at Del Canto Chambers