Spain to get €184bn from EU to support industries affected by Brexit

SPAIN is one of seven countries set to receive a multi-million cash injection from the European Union to help support its industries that could be affected the most by Brexit.

The reserve fund has been set aside for those whose trade with the UK could suddenly become loss-making, less lucrative, impossible or lead to a rise in costs due to customs barriers and other aspects of the eleventh-hour deal reached by prime minister Boris Johnson with the rest of the bloc before Britain left the 'club' at the stroke of New Year.

Ireland will benefit the most, given that its geographical proximity to, and the fact it shares a land border with, the UK will mean it suffers the greatest financial impact, and other countries relatively close by such as The Netherlands, Germany and France will also be compensated.

Spain is seventh on the list in terms of amounts given, and will receive €184.2 million, most of which will be for helping out its farming and fishing industries. 

Given that a majority of the UK's oranges come from the Valencia region and much of its fruit and vegetables is Spanish – lettuce typically comes from Murcia and tomatoes from Almería, for example – Spain will continue to trade with Britain broadly as before, other than where timescales mean it is not viable for fresh produce, but costs will increase.

One additional cost will be man-hours and new systems set up for the customs requirements now needed for Spanish and other European goods and produce to enter the UK, and the sectors receiving EU grants will likely spend some of their money on adapting these aspects.

The Spanish fishing industry, among that of other European nations, will also be affected, since the 'sticking point' that held up the final Brexit trade deal until time had almost run out centred on access to British waters.

With over 3,000 species of fish involved, many of which are not habitually consumed in the UK and the catch of which would almost entirely have been for other nations' use even prior to Brexit – such as herring, in the case of Sweden – negotiations in this area are unprecedented.

Some of the EU reserve fund given to Spain and other affected nations can be used for creating and protecting jobs in all industries and professions, meaning a slice of it may help finance the 'furlough' or temporary lay-off programme through which employees are able to claim dole money, whether or not they have accumulated enough through their working lives, to enable their firms to shut down or cut costs for a short period and afford to stay in business.

In total, the reserve fund is €5 billion, of which €4bn will be handed out in 2021.

Calculating how much each country was to get was based upon the 'relative level of economic involvement' the different nations had with the UK, which explains why some wealthier northern European countries will receive more than Spain as geographical closeness meant their trade was more constant and made up a bigger chunk of their national economy.

A second payment will be made in 2024, by which time the EU will have a clearer idea of how much Brexit has cost recipient nations.

This second and final cash injection is designed to recoup expenses incurred by affected industries, and which they are required to declare to European authorities.

Where these additional expenses – accumulated purely as a consequence of Brexit – exceed the sum granted to the country in question in 2021, or are more than 0.06% of the national gross income for that year, the member State will receive a second payment.

If the 2021 payment has covered all costs, no second grant will be given, but if the amount received this year exceeds what is needed to mitigate the effects of Brexit, it will not have to be refunded provided it is used to support employment and industry in general, which can include grants to firms and workers affected by the pandemic, and also cover necessary training and education among the workforce.

Some of the immediate changes Brexit has brought about include the fact that the EU is able to block travellers from the UK during the pandemic if contagion levels are high enough to cause concern – something it could not do if Britain was still a member State.

For this reason, travellers from the UK to EU countries that have restricted flights due to the new 'British variant' of Covid-19 will only be permitted entry to those countries if they are either resident there, or a citizen of them.

For Brits needing to enter Spain and other EU countries with the restrictions in place, they need only show their 'green certificate' or 'TIE', along with the standard negative Covid result from a test taken no longer than 72 hours before arrival and the passenger locator form with the requisite QR code, both of which are required from all travellers, including those returning from holiday.

Brits not resident in Spain or the nation they are travelling to will, from now on, need to have their passports stamped upon entry to the country.

British nationals resident in an EU country are protected by the Withdrawal Agreement and can continue to enjoy all the rights and freedoms they previously had as EU citizens, although only within their country of residence.

Holders of the 'green certificate', in A4 or credit-card size, are automatically covered.

Although a new photo residence card, or 'TIE', held as standard by residents in Spain from non-EU countries, has been made available for Brits and is now the only format given, those who already hold a 'green certificate' are not required to exchange this for a card, unless they want to.