Legal Advice
&
Company Internationalisation
Albia Capital
Bilbao
12 de diciembre 2012
ASECOEX
Colon de Larreategui, 35
48009 Bilbao (SPAIN)
Tel. +(34) 944 23 75 42 asecoex@asecoex.com
www.asecoex.com
FLORENCE (ITALY)
58 th Congress
October 29 – November 2, 2014
Foreign Investment Commission
STATE SUBSIDIES
“ The EuroVegas case”
“ Withdrawl of Solar Plant Subisidies ”
Mr. Txaber Fernandez Beldarrain

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.

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
15
10
5
Greenfield
Acquisitions
TOTAL
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.
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2.

Spain dropped to 52 nd in the 2014 Index from 46 th position on the 2013 index.
Source Doing Business Reports. Word Bank
Doing business (overall)
2014 Index
Ranking
52
2013 Index
Ranking
46
Procedures Days
Starting a business
Dealing with construction permits
Registering property
Getting credit
Protecting Investors
Enforcing contracts
Paying taxes
142
98
60
55
98
59
67 33
Payments per year
Time (hours per year)
Total tax rate (% profit)
136
91
56
52
95
58
10
9
5
SPAIN
8
167
58,6
23
230
13
OECD Average
12
175
41,3 www.asecoex.com

3.
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.
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4.
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.

Authorized entry for minors under 18 years and Gambling Addicts
FORBIDDEN  Against Spanish & EU law
THE MORE YOU ASK FOR, THE LESS YOU GET

6.
Implemt,Solar Plants
Subsidy Scheme
Modification of the
Subsidy Scheme
Supreme Court
Decisions
World Bank
ICSID
Investors:
•
National
•
Foreign Invest.
• Reasonable return rate (7,5%)
• Retroactive effect
Ratifying the legality of the new scheme and efects.
International Funds:
•
Hasdar (Abu Dhabi)
•
RREEF Infraestructure
2004 2010 2012/13 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?
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Tel.: + 34 944 23 75 42 www.asecoex.com