#EmbraceSpain XVII: May finally proposes a strategy for #Brexit

#EmbraceSpain XVII: May finally proposes a strategy for #Brexit

The UK bets on tough negotiations with the EU while in Spain the government tries to undermine the effectiveness of the ECJ ruling on floor clauses.

This new installment of the series #EmbraceSpain in Del Canto Chambers is totally marked by two events: first, the speech of the UK’s Prime Minister Theresa May on Brexit.

Secondly, in Spain, the extrajudicial procedure that the government intends to approve to manage the returns of the bank by floor clauses. Will be approved, predictably, at the next Council of Ministers and will give banks a margin of negotiation with the client to avoid going to trial.

Our Managing Partner, Leon Fernando del Canto, has published an opinion piece in the digital Huffington Post, calling this measure a “smokescreen” and a way to prevent the bank from complying immediately with the ECJ ruling Which forces them to repay all amounts overcharged for mortgages with floor clauses. The article emphasizes the sad reality of a “government that does not accept this decision and sees it as a blow to the bank instead of a victory of citizenship.”

From the tax point of view, refunds of floor clauses will have tax implications. Customers who receive these amounts will have to declare them to the Treasury as comments our colleague Claudio Vera in the article “Taxation of the amounts returned by the floor clauses.

Back in the UK, Theresa May finally spoke about the position that London would take in the forthcoming negotiations with Brussels to leave the European Union. Once Article 50 is activated, the United Kingdom will leave the EU within two years.

In the days leading up to the speech, there had been a tentative negotiation of a special agreement with the EU so that community-based businesses would continue to have similar access to the London City. Theresa May’s bid seeks to bring the UK-EU negotiations to the same level with the future aim of making the UK a global market player and international finance.

The United Kingdom will also leave the Schengen area completely and reject any kind of status similar to that of countries like Norway or Switzerland in this sense. The break with Schengen, in any case, leaves in the air not only to the citizens who live (or intend to enter) the UK but also to the British living in EU countries. London would have to negotiate country by country on the visas and residence permits of its expatriates.

Two months after the activation of Article 50 of the TEU, the British government adopts a stance of maximums. Once the negotiations begin, and these progressions, where the red lines finally end will be visible. An attitude of consensus and certain assignments on both sides would undoubtedly limit the edges of this Brexit that will forever change European politics.

That is why Del Canto Chambers continues to bet on the importance of dialogue, for this reason we are organizing a series of breakfasts exploring with experts and stakeholders the #BrexitOpportunity.

Del Canto Chambers will be with our partners of the Communication and Gender Agency at the Women’s March against Trump, which will take place this Saturday. Isabel Mastrodoménico, director of the agency and Rocío Blay, sociologist and equality agent will attend the Women’s March to be held in London with a tour that will start in Grosvenor Square, next to the US Embassy, and will end in Trafalgar Square; With the participation of the Women’s Equality Party (WEP), of which we are also members in Del Canto Chambers.

From our blog and our social networks like Twitter and Linkedin we will share our point of view on these negotiations, not without remembering the economic and cultural ties that unite us with the British. #Embracespain. #BrexitOpportunity.

Xavier Nova (@xavinova)

Director at Del Canto Chambers

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