Spain demands economic reciprocity to the United Kingdom in case of a hard 'brexit

Spain demands economic reciprocity to the United Kingdom in case of a hard 'brexit

The Government will guarantee the continuity of the financial contracts and regulates the customs and the situation in which the companies would remain

  When there is barely a month left until the deadline for the United Kingdom to leave the European Union (EU), pending what the British Parliament decides on the 12th on a possible request for an extension, the Government approved on Friday a real decree-law with measures to minimize the effects of a hard 'brexit'. The text deals with sensitive matters, especially in what has to do with trade and finance, with a common thread: reciprocity. Another of the major measures will be to give residence to the 400,000 Britons living in Spain.

The decree establishes that the maintenance of the approved measures "is subject to the granting of reciprocal treatment" by the United Kingdom. All the rules will be suspended if, within two months of the enactment of the decree law, the British authorities have not approved similar ones for the benefit of Spanish citizens residing in that country.

   In the field of financial services, the Executive understands that the loss of the 'community passport' (the activity permit of the firms in Spain, and vice versa) implies that British banks will have to adapt to the regimes of countries that are not part of it. of the EU. This measure affects the services resulting from contracts subscribed prior to the 'brexit', but with expiration after the withdrawal from the United Kingdom. In order to reinforce legal certainty, protect the client and avoid any risk to financial stability, the law establishes that the validity of the contracts is not affected by the withdrawal of the United Kingdom, a fact already endorsed by the European Commission. In addition, a temporary regime is established to guarantee that the adaptation does not imply problems.

In the case of customs, the possibility of advancing the requests required by the customs regime with third states before the withdrawal date is introduced to avoid their concentration in the days following the departure from the United Kingdom of the EU.

On the other hand, the Executive will authorize the transport of merchandise made by companies from the United Kingdom to and from Spain, if they have authorization. British firms that perform discretionary services in Spain will be governed by international treaties to which both the United Kingdom and Spain or the European Union are parties.

In the field of airport services, the departure of the Community Club from the United Kingdom would mean that the boarding and public catering services provided for flights within the European Economic Area would no longer apply.