A HARD Brexit could wreak havoc on Spain’s economy and will have ‘innumerable repercussions’ on Britons living in Spain, according to a leaked Madrid report.
The report, written by Spain’s Brexit commission, says Britain’s divorce from the union will leave Spain hugely exposed economically, and will have an impact on everything from fishing rights to the careers of Spanish footballers playing for UK clubs.
The bleak outlook says Spain’s GDP will fall by between €2 billion and €4 billion, force it to increase its EU budget contributions to €888 million and could result in some regions losing their European funding.
The hardest hit sectors, according to the report obtained by El Pais, will be tourism, food, pharmaceutical and automotive.
Exports are expected to fall by between €500 million and €1 billion.
It added that companies with large UK operations, like Banco Santander and Telefonica, would suffer if the pound weakened or if the UK’s rating was lowered.
The report goes on to say that while the UK will feel most of the effects of Brexit, the EU and Spain ‘will also suffer negative economic consequences.’
“The economic bonds between the UK and Spain are very tight,” it reads.
Migration policy will also be affected, with the report suggesting ‘innumerable repercussions’ for Britons living in the country.
They are the largest group of expats after Romanians and Moroccans.
The findings are based on information from different ministries in Spain and input from the Spanish embassy in London.
Spanish sources told El Pais: “The aim is to get some certainty for citizens and to help the [European] commission in its role as a negotiator.
“At the end of the process, the UK can’t find itself in a better situation outside the EU than in it. But if London doesn’t play dirty, the best thing would be not to do mutual damage.”
Mariano Rajoy said this morning that he hope things would ‘turn out well.’
“There’s no need to over-dramatise things,” he told reporters.
“What we need to do is have good negotiations. The UK wants good negotiations, so does Europe and so does Spain and I hope that things will turn out pretty well for everyone.”