MADRID: Stalled investment, fewer tourists, and a drop in food industry exports these are just a few of the concerns Spain’s autonomous regions have about the potential economic impact of a hard Brexit.
Around 40 regions from across Europe have analyzed how they would be potentially hurt by Britain’s exit from the European Union in a new study coordinated by the European Committee of the Regions, the body which represents these regions in the EU. Spain provided the greatest input in the text, with eight regions outlining their concerns. Catalonia however, while one of Spain’s wealthiest regions, did not participate. The region lost its autonomous powers after Prime Minister Mariano Rajoy activated Article 155 of the Spanish Constitution in response to the unilateral declaration of independence. According to the document, the two areas most affected by Brexit are trade and tourism. Madrid explains that the United Kingdom has been its main foreign investor since 2009 and Brexit could lead to a “possible sharp fall in the volume of investment from the United Kingdom, at least until the relationship between the EU and the United Kingdom is in full force and effect.
