- On 2 December the Andalusian elections ended almost forty years of Socialist governments.
- They gave way to a PP and Ciudadanos government, with Vox entering the Andalusian Parliament.
- A change of regional government can affect devolved taxation, aid and procedures: it is wise to follow announcements and consult the adviser.
On 2 December 2018, the regional elections in Andalusia ended almost forty years of Socialist governments and gave way to a new coalition government between the PP and Ciudadanos. Vox entered the Andalusian Parliament for the first time. The result closed a long era and opened another from which changes in administration and regional policy could be expected. After such a long era, alternation is itself a novelty worth following closely.
Although the news is territorially Andalusian, its relevance goes further. Regional elections are a thermometer of the country’s political mood, and their result was read across Spain as a sign of a more fragmented landscape. For business owners and families, the key is to separate the political reading, which is for each person to make, from the practical reading: what may change in the rules, aid and procedures that affect them. That distinction makes it possible to analyse the facts calmly and take decisions without personal preferences interfering.
A change of cycle
After almost four decades of continuity, a change of government and the arrival of a new party in the chamber alter the map of counterparts that companies and families deal with in the regional administration.
Changes after a long cycle usually have an effect on administration. A new government may review priorities, reorganise departments, modify procedures or introduce new lines of action. That does not happen overnight: existing rules continue to apply until they are changed, and the time it takes depends on the processing of each measure. The transition is therefore gradual and calls for follow-up.
A reflection of the political map
The result showed a more fragmented political landscape, with more parties and with majorities that required pacts. That fragmentation was spreading to other institutions and affects the stability and timetable of public decisions.
When no party reaches a sufficient majority on its own, the process of forming a government is prolonged and decisions are negotiated with more actors. That can lead to broader agreements, but also to greater slowness or greater volatility. For anyone planning, it means that the political calendar is less predictable, and that projects should not be based on the assumption of quick approval of any measure. And it reminds us, once again, that political timetables weigh less than rules actually approved.
What matters to companies and families
A change of regional government can affect devolved taxation, regional procedures and aid, infrastructure investment and public procurement policy. Those with activity in the region can follow announcements and consult their adviser about which measures affect them before adapting. Waiting to see the real content of decisions avoids unnecessary adjustments.
In practice, it helps to keep up to date on the procedures and aid one uses, to talk to the tax adviser about possible changes in taxes managed by the region and to pay attention to the deadlines of calls that might be modified. If the activity depends on licences, authorisations or contracts with the administration, it is useful to confirm that no changes affect their continuity. The most effective attitude is to find out calmly and act once concrete decisions exist. Generic announcements often take a while to translate into real change, and sometimes they never do.
Each change of government is, for a company, an occasion to review current rules and aid.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
