Editorial
“
Iberia could benefit
from Brexit fallout
”
Could Brexit actually have some benefits for Iberia?
Possibly, say some lawyers. Despite the concerns about
the loss of transactional activity – with an estimated
global value of up to $1.6 trillion – there is a view that
the UK’s decision to leave the European Union presents
Iberia, and particularly Spain, with an opportunity to
attract London-based businesses that want to move their
headquarters to mainland Europe.
What does the Iberian Peninsula have to offer? A lot.
As one partner at Uría Menéndez frames his impressive
sales pitch: “We [Iberia] can offer fantastic infrastructure,
plentiful office space, a young highly-skilled workforce,
an excellent climate and attractive labour costs.”
Law firms in continental Europe could also prosper
due to what some see as a potential backlash against the
supremacy of English law. Some lawyers speculate that
clients will be more reluctant – in light of the uncertainty
caused by Brexit – to accept contracts that are drawn up
in accordance with English law. Indeed, there is a view
that UK law firms will now have a fight on their hands
when it comes to convincing clients of the “efficiency of
English law” and that law firms in other major European
countries can only stand to gain from this.
But, of course, this is to put a positive spin on what is
a very uncertain situation. The International Monetary
Fund has said Brexit will have a negative impact on the
GDP of many countries, including Spain and Portugal.
Already, the Spanish tourism, residential real estate and
export sectors have been affected by a Brexit-related
slowdown, while the Portuguese economy, which
is beginning to find its feet again after the crisis, is,
according to some observers, ill-equipped to withstand
another blow. This prognosis is not good news for
Portugal, especially considering some lawyers in Lisbon
are already anticipating that a number of UK investments
in the country could be suspended.
Yet there is hope. Brexit does represent an opportunity
for Iberia in the sense that some businesses who have
become disenchanted with the UK may find opening
new headquarters in Madrid, for example, appealing.
However, with some lawyers suggesting that high levels
of bureaucracy in Spain could scare off international
companies, there are concerns that Iberia is not ready to
take the opportunity it has been offered.
Ben Cook
Editor
Iberian Lawyer
[email protected]
Twitter: @BenCook_Iberian
www.iberianlawyer.com
July / August 2016 • IBERIAN LAWYER •
1