- On 17 June Jaume Collboni was elected mayor with the votes of his group, Barcelona en Comú and the PP, although Xavier Trias had won the most votes.
- The new government promised more legal certainty for investment and a review of some planning policies.
- What matters to a business is not promises but the rules that are finally approved and applied.
On 17 June 2023 Jaume Collboni was elected mayor of Barcelona with the votes of his group, Barcelona en Comú and the PP, although Xavier Trias had won the most votes in the elections. That closed the period of negotiations opened after the municipal elections.
The vote came as a surprise to many, because the make-up of the support combined groups of very different orientations. For the city’s economic life, the relevant question was what direction the new government would take and how it would translate into concrete decisions on licences, planning, housing and public space. Beyond the names, what interests anyone with a business in the city is stability: knowing that the government is formed, that its priorities will be spelt out and that there will be clear counterparts in each area.
An unexpected investiture
The vote surprised because it combined support from different groups and left the list that had won the most votes at the polls outside the mayor’s office.
When the list with the most votes fails to form a government, the electoral rules allow another candidacy to reach the mayoralty if it gathers the necessary support. It is a legitimate and anticipated mechanism, although it often generates political debate. For economic activity, what matters is that uncertainty is closed and it is clear who takes the decisions. The system for electing the mayor is designed so that there is always someone in charge, but it does not guarantee that they have a sufficient majority on the council, which conditions their ability to pass their own bylaws and budgets.
What the new government promised
The new city government promised more legal certainty for investment and a review of some planning policies. Legal certainty, that is, knowing in advance under which rules one will work and that they will not change arbitrarily, is a decisive factor when investing in premises, a property project or the opening of a business.
The promises of a newly formed government are an indication of its priorities, but not a guarantee of results. Between the announcement and the application there are procedures, deadlines and, sometimes, resistance. That is why the real value of a promise is measured when it becomes a bylaw, a resolution or a stable administrative practice. Investment, whether in premises, a property or a business project, needs long horizons. If the rules change frequently or unpredictably, perceived risk rises and decisions are postponed or become more expensive.
What to do
For companies and property owners, a different phase in the city was opening. It is reasonable to follow the council’s announcements on licences, planning and housing closely, and to consult the adviser on how they may affect projects under way.
And, while there are no concrete rules, avoid irreversible decisions based solely on statements of intent. If a project depends on a licence or a change in municipal criteria, it is worth leaving room in deadlines and budgets, and allowing for conditions to become clear later than expected. A practical way of following the new term is to consult the decisions of municipal bodies, the bylaws in the pipeline and the public consultation periods, where changes are usually announced before they take effect. If there are projects awaiting a licence or authorisation, it is worth keeping in contact with municipal officials and with the adviser, and documenting each step well, so that a change of team does not force a restart from scratch.
What matters to a business is not promises but the rules that are finally approved and applied.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
