THE Balearics would be one of Europe’s worst affected areas in a no-deal Brexit.
The government has reported its fears in a hard-hitting damage limitation report, compiled by the EU.
Half of Spain’s regions fear a serious downturn if the UK left the union without a deal.
A total of 8 out of 17 regions have joined a group of 40 European areas warning of serious economic effects.
A massive 80% of the Balearic economy relies on tourism and if Brits can no longer afford to travel, it will greatly affect the island’s service industries.
“Any change in the freedom of movement (of European citizens) will be felt, given that 25% of tourists are from the UK,” read the appeal, compiled by the European Committee of the Regions.
The UK is also the second biggest investor in the region after Switzerland.
The Canary Islands, which ship a considerable amount of food to the UK, have warned that no free trade agreement ‘could destroy’ its economy.
Andalucia is also extremely vulnerable to Brexit with a feared drop in tourism as well as trade and investment, plus the issue of the Gibraltar border, which could affect the jobs of 10,000 Spanish workers.
The other regions affected are Valencia, Murcia, Castilla la Mancha and the Basque region, which has 50 companies with offices in the UK.
Catalunya was excluded from giving its opinion after losing its autonomy following the referendum chaos last year. But it will also be badly affected.
It is estimated that a hard Brexit will leave a €10 billion hole in EU finances each year, much of which would be spent in Spain.
The report, compiled over the last few months, stated that all of the 40 regions would see ‘immediate effects’ on commercial trade and the movement of people and tourists.
One British-owned Mallorcan removal company, White & Company, told the Olive Press this week that it was already seeing a fairly substantial net loss of British expats from the island.
“We’re definitely moving more back to the UK, than are arriving,” said spokesman Robert Jones. “It’s a lot to do with the uncertainty at the moment with the Brexit scenario and the older generation who are anxious about the future generally,” he added.
If Spain is so terrified of a no-deal Brexit, it should srop being awkward about Gibralta (a totally separate matter from EU membership) and persuade the intransident EU leasders to talk sense.
The UK leaving a 10,000,000,000 Euro hole in the EU budget!!! And you wonder why we want out!