The Word on BREXIT - News and Information from Spain

News and Information from Spain

The Word on BREXIT Edition - June 2017

The Word On Brexit

With the general election over and the UK moving closer to its two-year deadline, we look at what the Spanish papers are saying and what the emerging situation is for those of British nationality with interests in Spain.

Since we last published this newsletter, article 50 has been set in motion and a general election has taken place. Yet neither of these events has really clarified what people can expect who live in Spain or who have property here. If anything, there is even less certainty about the future.

Prior to the general election it was pretty clear that Britain was heading for a hard Brexit. Although it seems that neither of the two leading political parties will shy away from Brexit, its exact form, hard, soft or somewhere in between, seems to be more in the balance.

Perhaps the good news is that all those concerned do seem to recognise the need for those EU nationals marooned in the UK and British nationals in other EU countries, to have their situations clarified. It is to be hoped that with a softer approach to negotiation a reciprocal tone will be adopted in Europe too. However, there is no guarantee that this will be the case. For those reliant on the good will of their Spanish hosts, less tough talk around Gibraltar and a rhetoric more attuned to finding middle ground would be welcome.

Prior to the general election, media coverage suggested that Spain wanted to keep close to current arrangements in respect of treatment of Spanish nationals in the UK and British nationals in Spain. They want the rights of nationals who have been resident in either country for more than five years to be respected and an agreement on the rights of temporary residents to be reached. However, it is Gibraltar where there are significant differences of opinion.

Gibraltar

According to El País in English the document ‘Negotiations on the withdrawal of the United Kingdom from the EU’ sent to the Spanish Congress refers to Gibraltar as a ‘matter of state’. The current situation had to be accepted by Spain when it joined the EU as the UK was already a member. Now Spain is not happy with the ‘unjustified privilege’ that the rock currently enjoys meaning that it is not part of the customs union or subject to British law. A situation, it is claimed, that has turned it into a tax haven.

Consequently the document sent to Congress wishes to restore the priority of Spanish interests and remove the issue of unfair competition. For more detail on this, read the article itself:

Spain won't allow Gibraltar to exercise “unfair competition” after Brexit

However, changes are already afoot for the lucrative online gaming industry which is a major business in Gibraltar:

Ruling sees Gibraltar gaming industry told to pay more taxes to UK

Support for the Spanish in the UK

From this article in El País it does sound as though the Spanish Government is ready to lend a hand to its nationals living in the UK. Apparently the group is called ‘Task Force Brexit’ and is intended to provide advice and support. The task force will respond to five demands from Spanish residents:

  • A support and information centre
  • Assistance for those wanting permanent residence
  • Creation of a Brexit section on the embassy and consulate webpages including a F.A.Q section
  • Publication of an information newsletter
  • Organization of talks and conferences

No doubt this is the type of care that many British people living in Spain would like to see on their behalf too.

Government to create “Brexit Task Force” to assist Spaniards in UK

Post election – good news or bad news?

Of course, this depends upon the perspective you have. What is certain is that no one has the answers yet and we are still faced with conjecture. However, it would seem that Theresa May must go forward into negotiations prepared to compromise a little more than at the outset.

Her hardline and uncompromising approach would appear to be unsustainable in the face of a lack of a strong mandate from the electorate. We may not be sure what the majority of the British people want but they did not provide the resounding endorsement of what was happening that was expected.

Different sources have put together their own conclusions about what we can now expect from Brexit. Once more this is nothing more than speculation, but in the absence of anything else it makes interesting reading:

Murcia Today explain their take on the election results. This is a good summary that looks at some of the options of what might happen from the point of view of those with property in Spain:

Brexit: What happens now for Br-expats in Spain

Some sources, such as The Independent are suggesting that the focus might have to change from immigration to the impact of Brexit on industry and how business can be protected. Certainly the news would seem to be a softening of the approach to be taken:

Theresa May signals austerity is over and overhaul of Brexit plans

Speculation will continue for some time to come with the latest from The Telegraph being that a soft Brexit is much more likely since the election than before:

How will the general election result affect Brexit?

The Financial Times also reports that a softer Brexit is more likely:

EU reacts with consternation to UK election as Brexit talks loom

According to this interview with David Davis the first item on the agenda when the negotiations start will be the position of EU citizens in the UK and UK citizens in the EU. People who are living in Spain will appreciate it if there can be some indication of what their future might look like:

UK Election Impact on Brexit

The Conversation provides its own take on the election and the motives behind it. The difficulties of reaching agreement before the deadline is noted as is recognition of the difficulties ahead:

General election 2017: what does this mean for Brexit?

What the Spanish papers have to say

El País wrote that Brexit is turning into something of a thriller with first the demise of David Cameron and now that of Theresa May. It reports how time is ticking on and a hard Brexit is no longer a certainty. Brussels is preparing for different options but what they don’t want is for no agreement to be reached. However, with time running out, this could become more likely.

La Informacion reports that the British have shown their rejection of the extreme Brexit. They raise questions about May’s ability to negotiate given the election result and the need for her to form allegiance with the Ulster Unionists.

Expansión reminds us that the decision for a hard or soft Brexit is not only down to the UK. They also speculate as to whether there is a possibility of an about turn on the Brexit decision. They suggest that for this to happen there would need to be another general election with a party winning who are committed to a second referendum. The second referendum would then need to show a desire from the point of view of the British public to remain. They think this is highly unlikely to happen. Even if it did, there is no guarantee that article 50 could be withdrawn.

La Razón reports that May has confirmed that Brexit negotiations will begin again next week. They report on the meeting between the French president Emmanuel Macron and Theresa May and that Macron was keen to see the negotiations proceed as quickly as possible.

So, we remain in a quandry once more. The only fact and certainty is that the pound has gone down. Everything else is still in the balance. We will just have to wait and see.

To end on a lighter note...

It’s a nice little number sung by two Spaniards in the UK as they contemplate their exit back to Mallorca. Some interesting lyrics from the perspective of those who had taken up residence in the UK and now are facing the future with uncertainty:

DESPA-BREXIT (cover)