Brexit from the eyes of The Spanish Super
Surely the Brexit is the hottest topic of recent days. As a company located in the United Kingdom, this issue does not go unnoticed. The probability of a hard Brexit has risen enormously in recent days and although there are a lot of articles explaining what it means, we wanted to spend five minutes analysing what it means especially for Spaniards who live in the UK.
Let's analyse the key points that many people ask:
- Do the British really want to separate from the European Union? This question is complicated because in this country there are 4 countries. I would say that Scotland, Wales (although they voted to leave) and Northern Ireland want to stay in the EU, England instead, I would say that most of its population wants to leave.
- Why do they want to leave? There are several factors:
- The first is that they have the perception that foreigners are taking away opportunities and social benefits (widely shown as a big lie, although perception does not understand about truth or lies
- The second is cultural, the British consider the EU a regulatory and bureaucratic body that contributes little to the United Kingdom. This is neither true nor false but the reality is that this country did not sign Schengen (there are still borders with Europe except the famous soft border of Northern Ireland after the Good Friday agreements) and it is not part of the Euro. For practical purposes the United Kingdom plays in the European "league" which provides an unbeatable legal and trade framework. However, they could really create their own trade agreements and be successful, make no mistake
- The third, and very important, is the economic and real estate bubble that exists in England. London yupies and a well-to-do upper middle class live very well but the lower middle class can not afford to buy a home or even rent it depends on where. This means that there is a high percentage of English people who do not care very much that the United Kingdom enters a serious economic crisis if this allows the housing to go down, that there are fewer yupies in London and that the social benefits (the famous "benefits") reach their hands instead of EU citizens.
- Is a hard Brexit ("no deal") bad for the UK? This has a trick, the United Kingdom has a negative trade balance of about 200 million dollars. This means that it imports much more than it exports. As you might expect the European Union is the largest exporter to the United Kingdom, Germany, for example exports 90 million dollars (mainly cars) and imports 38 million. A hard Brexit would cause the application of tariffs in both directions with Europe but given that the UK trade balance is negative it seems clear that European companies would be more affected. Added to this some English people’s idea that some products will be replaced with local products that will not have to pay tariffs and will be cheaper (the English beer brands are anticipating massive demand). On the other hand, a hard Brexit is likely to cause a recession in the United Kingdom in the short term, which will cause a drop in the price of housing, one of the objectives of a large percentage of Brexiters. In short, a hard Brexit interests the separatists but not the politicians who never like to lead a country in economic crisis.
- What awaits the Spaniards after Brexit? At a legal level I think that the situation of the Spanish in the UK will be solved in a simple way, make no mistake, when they want, the English are very pragmatic. What I think will radically change is the shopping cart, we will see how the prices of products such as fruit and vegetables rise and local products maintain or low their price (apples, milk, meat or potatoes, for example). It will also change in the medium/long term the multicultural ecosystem that now reigns in most of the country, less Spanish, French or Italians will decide to come to live here and less immigrants in general, so the country will lose something that I believe was quite unique until now.
- What awaits The Spanish Super? The reality is that we do not know, there are two things that can affect the prices of the products, the exchange of currency, that if there is hard Brexit it will hit hard at the pound sterling and the tariffs that will increase the final price to the client. What we do tell you is that we are already working on a plan to affect as little as possible our customers in the United Kingdom (which are many).
I hope that both those who live in the United Kingdom and those who do not, find this article interesting and have solved some doubts. Whatever happens I'm sure we will be able to continue buying Spanish products that make us forget Brexit, from The Spanish Super, we will make it possible, do not have any doubt.