He was committed to “facilitating the return to Catalonia of the head offices of companies”, which left in 2017 to protect themselves against the risk of possible independence of the region. Two months after his return to power, thanks to the essential support of deputies from Carles Puigdemont’s party (Junts per Catalunya), socialist Prime Minister Pedro Sánchez has still not specified how he intends to respond to this central demand of the separatists.
A workhorse of the Catalan separatists, the demand for a return of companies that transferred their headquarters outside of Catalonia during the 2017 secession attempt is causing turmoil in Spain, with employers fearing “political bargaining” detrimental to business.
Iconic groups
According to the Spanish body in charge of commercial property registers, nearly 7,000 companies have moved their headquarters outside of Catalonia since the secession attempt. Among them are many emblematic groups, such as CaixaBank, Sabadell, Naturgy or Cellnex, most of which have left for Madrid, Valencia (east) or Malaga (south).
A betrayal in the eyes of the separatists, who accuse the Spanish government, at the time led by the right, of having favored this hemorrhage via a decree allowing companies to move their headquarters after a simple green light from their board of directors, without the need to convene the general meeting of their shareholders.
Little tax impact
“It is incredible that this decree is still in force,” insisted Josep Rius, vice-president of Junts, a party which once again put this subject in the balance last week in exchange for his abstention during a crucial vote for the government in Parliament.
The flight of companies from the Catalonia region has had little impact on the fiscal level, with corporate tax being managed by the central state. But it has a strong symbolic value and would result in a significant loss of income for Catalonia in the event of independence – a goal that Junts has not abandoned.
A “climate of trust” so that they come back
How then can we convince companies? Asked on Cadena Ser radio, Josep Rius mentioned the idea of “incentives” but also – for the first time – financial “sanctions” for recalcitrant groups. A proposal that has set the employers on fire. “Companies have the right to set up and invest wherever they want,” thundered the president of the CEOE confederation, Antonio Garamendi, assuring that none had left “for pleasure”.
For them to come back, we need “a climate of trust”, not threats of “fines”, he insisted. A message supported by the regions where the companies concerned have set up, reluctant to see them leave, but also by the Popular Party (PP, right), which once again criticized the “concessions” made by Pedro Sánchez to the separatists.
“Freedom of businesses” to establish their headquarters wherever they wish
Anxious to defuse the situation, the government hastened to close the door to any sanctions. “European regulations” guarantee “the freedom of companies to establish their headquarters” wherever they wish, recalled the Minister of the Economy Carlos Cuerpo.
According to experts, several measures could be used, such as tax incentives or the provision of land or buildings at reduced prices, for example. But on condition, again, that these measures comply with Community law and free competition.