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CentrePiece article
Spain's response to Brexit
Luis Garicano
December 2016
Paper No' CEPCP491:
Full Paper (pdf)

CentrePiece 21 (3) Winter 2016

Tags: spain; uk; brexit; trade

Brexit puts at risk the close and mutually beneficial relationship that the UK and Spain have long enjoyed, according to Luis Garicano. With Spain unlikely to budge on freedom of movement and Gibraltar as a negotiating card, the UK is likely to find itself with a very bad deal, he concludes. Before Brexit, the UK-Spain relationship was a picture perfect illustration of the economic and political benefits of the European Union and the Single Market. So there is a large downside for both Spain and the UK from any disruption to trade and investment flows between the two countries. For the UK, the highest human and economic cost will be from unravelling freedom of movement. Garicano argues that Spain is likely to demand that Single Market access continues to require commitment to the four freedoms. What’s more, Gibraltar highlights the likely result of Brexit negotiations: the UK’s ‘death by a thousand cuts'.