The Spanish government is moving forward with implementing a controversial amnesty law against Catalan separatists, despite accusations that the move threatens the country’s image as an investment destination.
Prime Minister Pedro Sánchez, courting business leaders in Davos on Wednesday, struck a deal to pardon separatist politicians involved in Catalonia’s illegal 2017 independence referendum, which will be renewed in November. He secured a term of office.
The deal has come under heavy criticism from some of the country’s business elites, who have labeled the amnesty a cynical ploy to undermine the rule of law, scare investors and create unsettling uncertainty. It is pasted.
Antonio Garamendi, head of Spain’s main business lobby, CEOE, said last week that he “totally disagrees with the amnesty.” “And I’ll tell you that 99.9 percent of Spanish businessmen don’t agree with that either.”
CEOE previously warned that the amnesty deal, which is opposed by the majority of Spaniards, “creates an increasingly complex business environment” and risks causing a “deterioration of the company’s image abroad”. Ta.
The chairman of Mercadona, Spain’s largest supermarket group, said last year that the amnesty was causing “division among Spaniards”. The chief executives of lender Vaninter and insurer Mapfre also attacked the move.
This criticism was rejected by Mr. Sanchez. Sanchez is scheduled to meet Bill Gates, chief executive officer of Siemens Energy, Sanofi and Fujitsu, in Davos on Wednesday.
Earlier in the week, the prime minister justified the deal by saying it was “great news” that Catalan separatists who want to secede from the Spanish state are taking part in governing. The Socialist Party-led coalition lacks a parliamentary majority, but Catalan parties have given it the votes it needs to secure another term as part of an amnesty deal.
The amnesty ends criminal proceedings against hundreds of pro-independence leaders and supporters related to the 2017 referendum, expunging charges ranging from public order offenses to misuse of taxpayer funds. It turns out.
Amid the post-deal political turmoil, new threats against businesses emerged last week from the hardline separatist party Together for Catalonia, which led the amnesty call.
One of the ideas floated by Together in its latest round of horse-trading with the government was to penalize companies that moved their headquarters out of Catalonia during the 2017 crisis and don’t return.
“It’s ridiculous,” said Carlos Artal, head of the Spanish branch of Aiming, a Paris-based business consultancy. “European law allows for the free movement of people, businesses and goods. That would be a violation of European law.”
Although the idea of fines ultimately fell through, the Socialist Party said it was open to providing incentives for companies to return to Catalonia. They also agreed to give Catalonia more influence over immigration control.
Altar said the episode reinforced the uncertainty created by the pardon. “What’s happening is that today there is a law.” [and] There are rules, but they could change tomorrow.”
On Tuesday, Isabel Díaz Ayuso, the conservative head of Madrid’s regional government, said Sánchez’s government was “governing for the few and for itself.” As a result, investment in Spain is “starting to fall,” she said.
Ayuso’s head of economics, Rocío Albert López Ybor, told the Financial Times that the pardon “sends a signal that the judgments established by judges and handed down by the Supreme Court may not be respected. It’s a thing,” he said. This is very bad news for the business sector. ”
However, the government denies suggestions that Spain’s investment attractiveness has been diminished. Carlos Cuerpo, the country’s new economy minister, said at last week’s Spanish Investors’ Day conference that foreign direct investment was “booming”.
“We are always working with investors, but we have never seen any postponements, delays or cancellations of projects,” a senior government official said. However, the official added: “There’s a lot of political noise. There’s no denying that. That’s the reality.”
According to foreign investment consultancy SIfdi, Spain will receive a total of 34.5 billion euros in FDI in 2022, the second highest figure on record. This level fell in 2023 but will remain “very high”, government officials said.
In November, Google opened a cyber security center in Malaga, and a month later oil group Cepsa and an affiliate of Maersk paid up to 1 billion to open Europe’s largest “green” methanol factory on the south coast. announced that it would invest euros.
But some government officials worry that warnings about Spain’s tarnished image may become self-fulfilling.
The amnesty will determine politics in the coming weeks, party officials said, as the Socialist Party had hoped the amnesty bill would be passed by the House of Commons this month.
The process will focus on the crimes to be forgiven as well as the potential beneficiaries. Among them is former Catalan president Carles Puigdemont, who led the 2017 independence movement and fled to Belgium six years ago to avoid arrest. He is likely to return to Catalonia if charges of insubordination and misappropriation of public funds are dropped.
Sanchez presented the amnesty deal as part of a broader effort to “normalize” relations between the region and the rest of Spain. He has also defended the country as an “ideal place to invest” with strong democratic institutions.
“In fact, it is said that if there is less conflict with Catalonia, there will be more stability,” a government source said. “It’s good for business.”