Transcript Diapositiva 1 - Florence 58 UIA Congress

Legal Advice
&
Company Internationalisation
Albia Capital
Bilbao
12 de diciembre 2012
FLORENCE (ITALY)
58th Congress
October 29 – November 2, 2014
Foreign Investment Commission
ASECOEX
Colon de Larreategui, 35
STATE SUBSIDIES
48009 Bilbao (SPAIN)
“The EuroVegas case”
Tel. +(34) 944 23 75 42
“Withdrawl of Solar Plant Subisidies”
[email protected]
www.asecoex.com
Mr. Txaber Fernandez Beldarrain
INDEX
1. FDI in Spain
2. Ease-of-doing Business Index
3. State aid: EU Regulations
4. Spanish Regional Aid Map 2014-2020
5. Case 1; EUROVEGAS, or “Welcome Mr. Marshall”
6. Case 2; Withdrawal of Solar Plants Subsidies
www.asecoex.com
1. FDI in Spain
 Spain is the 9th largest recipient of FDI worldwide (FDI Regulatory Restrictiveness Index)
 Gross FDI up 8.8% in 2013 to €15.8 billion
25
20
Greenfield
15
Acquisitions
10
TOTAL
5
0
2009
2010
2011
2012
2013
 One of the leading global economic powers.




Domestic market: 47 million population plus additional demands of 57.7 million tourists.
Geostrategic position.
Interesting business opportunities.
Rapid growth in international trade and foreign investments in recent years has made Spain the
sixth most open economy to FDI.
www.asecoex.com
2. Ease-of-doing Business Index
 Spain dropped to 52nd in the 2014 Index from 46th position on the 2013
index. Source Doing Business Reports. Word Bank
2014 Index
Ranking
2013 Index
Ranking
Procedures
Days
Doing business (overall)
52
46
Starting a business
142
136
10
23
Dealing with construction permits
98
91
9
230
Registering property
60
56
5
13
Getting credit
55
52
Protecting Investors
98
95
Enforcing contracts
59
58
Paying taxes
67
33
SPAIN
OECD Average
Payments per year
8
12
Time (hours per year)
167
175
Total tax rate (% profit)
58,6
41,3
www.asecoex.com
3. State aid: EU Regulations
In accordance with Art. 107 Article 107 Treaty on the Functioning of the
European Union (TFEU , the following States Aids are compatible with the
internal market:
a) aid to promote the economic development of areas where the standard of
living is abnormally low;
SPAIN;
 26 % unemployment
 GDP per capita 93 % below EU General Average (Sweden 123 %)
b) aid to promote the execution of an important project of common European
interest or to remedy a serious disturbance in the economy of a Member
State;
c) aid to facilitate the development of certain economic activities or of certain
economic areas, where such aid does not adversely affect trading
conditions to an extent contrary to the common interest.
www.asecoex.com
4. Spanish Regional Aid Map 20142020
The designated areas have:
1. A GDP per capita below 75%
of the EU average.
2. A total population of 32.25 M
(68.59 % of the population of
Spain).
Levels of aid that can be granted to regional investment projects carried out
1. By large enterprises; between 10% and 35% of total investment costs.
2. By medium sized companies; the percentages can be increased 10%.
3. By small enterprises; the percentage can be increased 20%.
www.asecoex.com
5. Case 1; EUROVEGAS 2013 “Welcome Mr. Marshall”
 Authorized entry for minors under 18 years and Gambling Addicts
FORBIDDEN  Against Spanish & EU law
www.asecoex.com
THE MORE YOU ASK FOR, THE LESS YOU GET
6. Case 2; Withdrawl of Solar Plant Subisidies
Implemt,Solar Plants
Subsidy Scheme
Modification of the
Subsidy Scheme
Investors:
• National
• Foreign Invest.
2004
Supreme Court
Decisions
•Reasonable return
rate (7,5%)
•Retroactive effect
2010
World Bank
ICSID
Ratifying the
legality of the
new scheme and
efects.
2012/13
International Funds:
• Hasdar (Abu Dhabi)
• RREEF Infraestructure
2014
Direct Effects
 Spanish solar PV plants have suffered an average 30 to 40 per cent cut in income.
 More than half of Spain’s solar “photovoltaic” companies have gone bankrupt.
Discrimination due to nationality could occur if the award rendered by ICSID is in
favor of international funds.
If that were the case, what could Spanish investors do?
www.asecoex.com
Txaber Fernandez Beldarrain
Tel.: + 34 944 23 75 42
www.asecoex.com