Barcelona loses the European Medicines Agency

On 20 November 2017 the EU chose Amsterdam as the new seat of the European Medicines Agency, which had to leave London because of Brexit. Barcelona, which started as the favourite, was eliminated in the first round of voting. The decision ended a long competition between European cities, which had submitted their bids with the backing of their governments and with great expectations of what the agency could bring them. Each bid combined technical, infrastructure and quality-of-life arguments, in a competition followed closely by the business world.

For Barcelona, the result was a disappointment, and not only for reasons of prestige. An agency of this kind is a magnet for skilled professionals, companies in the sector and associated activity. Beyond the outcome, the bid served to highlight the city’s assets, and the result invites reflection on which factors decide this kind of international competition. It is a useful question for any city that aspires to attract projects of global relevance.

What was at stake

Hosting a European agency brings skilled jobs, visitors, conferences and associated service activity, as well as international prestige. That is why several European cities competed for a seat that Brexit forced to relocate. Around such an institution a small ecosystem forms: lawyers, consultancies, training companies, hospitality services and suppliers of every kind that benefit from its presence.

A health agency, moreover, maintains relations with the pharmaceutical industry, research centres and hospitals, which strengthens the city’s appeal for companies in the sector. It is not an effect that can be measured overnight but a sustained influence that accumulates over the years. That is why the candidate cities took the competition so seriously and mobilised considerable resources. The scale of the effort gives an idea of what is at stake.

Why the result matters

Beyond this case, the episode showed that attracting institutions and companies depends on many factors, among them political stability and the perception of legal certainty. In a context of uncertainty in Catalonia, competition between cities is not decided only on infrastructure or costs. Those who take location decisions value predictability as much as services.

It is unwise to attribute the result to a single cause, because in a vote among states various considerations come into play, of territorial balance, negotiation and opportunity. But it is reasonable to conclude that the image of a stable and predictable environment is a relevant element in any competition of this kind. It is a lesson that holds for cities, regions and also for companies competing for talent and investment. Reputation is built slowly and lost quickly.

A lesson for the city

For Barcelona’s businesses, the lesson is that the reputation of the environment is a collective asset. Maintaining and strengthening what makes the city attractive, such as talent, connectivity or quality of life, remains the best way to compete for projects with international reach. Each company contributes, through the way it works, to the overall image of the place where it is based.

In practice, this means looking after relations with local professionals and universities, investing in training, working with other companies and working with the authorities to improve services. It also means not assuming that what attracts today will go on doing so tomorrow. The cities that compete best are those that keep moving and do not settle into the advantages of the past.

Cities compete for talent and trust as much as for infrastructure.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.