Moncloa warns of ‘negative consequences’ of Brexit in Spain

A SPANISH report for the EU Brexit commission has warned of the impact Britain’s withdrawal from the bloc will have on Spain.

The document – headed by Deputy Prime Minister Soraya Saenz de Santamaria – said the Spanish economy will “suffer the negative consequences” from one of their main trading partners leaving the EU.

Brexit is predicted to reduce Spain’s GDP by 2.4 per cent, roughly between €2 billion and €4 billion, and the Moncloa will have to provide an extra €888 million towards the EU budget, based on preliminary estimates.

Tourism, agriculture and the automotive industry are set to be hit the hardest, with a fall in exports of an estimated €500 million in one of the better scenarios, and €1 billion in the worst case.

Migration was also highlighted by the report as a key issue as the changes of free movement of people and goods will affect Spain’s relationship with Gibraltar, and will affect many different sectors including the situation of Spanish football players in the UK.

The document calls for the situation of hundreds of thousands of expatriates, from all over the EU, to be considered in negotiations and “provide certainty” on these issues.

Regions such as Murcia and the North African Enclave of Melilla may also lose EU funding.

Although the document doesn’t lay out Spain’s political position, the data shown suggests a ‘hard Brexit’ would be worse for Spain.