#EmbraceSpain XIV: Twelve months to build certainties

#EmbraceSpain XIV: Twelve months to build certainties

Spain and the United Kingdom end 2016 with their economies up and with optimistic data in investments and in the financial and real estate sectors.

In Del Canto Chambers we dismissed the last week of the year with the desire that Spain and the United Kingdom their commercial and cultural ties intact. That’s why we created the campaign #EmbraceSpain and so we are working on a series of editorial breakfasts for 2017 with the newspaper El País titled #BrexitOpportunity

It will not be easy, because Brexit has already changed Europe, but not impossible either. Policies and entrepreneurs of both countries have already manifested on several occasions the intention for the two governments to maintain good relations.

How to leave the European Union raises debate, for obvious reasons, of enormous intensity in the United Kingdom. Brexit supporters cannot agree on how to do it, hence the various proposals of “hard Brexit”, “soft Brexit” or “clean Brexit” that are heard from the world of politics and in the company.

The economy is, in fact, the bridge that will maintain the validity of the Spanish-British ties. The UK closes 2016 with GDP growing more than expected, despite the uncertainty generated by the Brexit. Business confidence reaches record highs and investors continue to rely on the financial opportunities offered by this country: in the case of the real estate market, house prices are up 4.6%.

In Spain, the British are increasing their investments in the Costa del Sol, while the stock market is at record highs and retail trade is up 4% despite the rise in corporate tax; An increase that could possibly be appealed to the Constitutional Court by the Spanish Confederation of Business Organizations (CEOE).

In addition, the final judgment of the CJEU on land clauses, recognizing the total retroactivity, obliges Spanish banks to repay the amounts overcharged to their clients for the mortgages affected by these clauses. As a consequence, the government has approved by Royal Decree-Law a code of good practices for their return by the banking entities.

The year 2017 will be key: Article 50 of the TEU will be activated and Brexit will start. The outcome of this journey will depend not only on the way in which Spanish and British cross the bridges that still join them but also the future of the European Union as a project. In short, twelve months to build certainties.

From Del Canto Chambers, as well as from our blog and our social networks (Twitter and Linkedin) we wish you a happy holidays and a prosperous new year.

Xavier Nova (@ xavinova)

Director of Del Canto Chambers


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