Madrid (AFP) – Spanish business circles believe banking giant Sabadell’s decision to return its headquarters to Catalonia will entice back the thousands of firms that fled after the region’s botched 2017 independence bid. The European country’s fourth-biggest bank announced on Wednesday it would return to the wealthy northeastern region because “the circumstances that motivated its move over seven years ago no longer exist.” Up to 7,000 companies moved their headquarters out of Catalonia after the regional government held a secession referendum deemed illegal by the courts, and unilaterally declared independence in 2017.
The upheaval — Spain’s worst political crisis in decades — caused acute uncertainty for banks as the European Central Bank’s deposit insurance scheme would have no longer protected their customers in an independent Catalonia. Although the firms including CaixaBank and energy giant Naturgy continued to operate normally in Catalonia, the exodus was politically and symbolically important. Separatist parties Junts per Catalunya and ERC, which viewed the flight as an act of treachery, tried in vain to coax them back.
Salvador Illa, who ended more than 13 years of pro-independence Catalan governments when he was elected regional leader last year, claimed Sabadell’s move proved a page had been turned. “We are on the right path,” the Socialist said, highlighting his region’s “legal security” and “institutional stability.” Sabadell’s return to its historic home is “a big step so that Catalonia is once again the locomotive of the Spanish economy,” said Josep Sanchez Llibre, head of the regional employers’ organisation. “I said many relevant companies would return to Catalonia and this is coming to pass…There will be more news of company returns shortly,” he added.
Sabadell’s decision “represents a path for more companies to come back,” University of Barcelona economy professor Gonzalo Bernardos told television channel La Sexta.
– ‘Political’ move? – The boss of Spain’s main business confederation, Antonio Garamendi, was also optimistic that “everyone comes back home” in the wake of Sabadell. But a potential influx of company headquarters back to Catalonia could take some time. CaixaBank said it would keep its operations based in the eastern city of Valencia “indefinitely,” while Naturgy and telecommunications firm Cellnex have confirmed a return to Catalonia is not their priority.
ERC spokesman Gabriel Rufian dismissed Sabadell’s announcement as “anecdotal” and pointed to a “campaign” by Illa to portray “an alleged return to normality” in Catalonia. Some observers believe Sabadell’s return is motivated more by its attempts to stave off a hostile takeover bid by larger Spanish rival BBVA. The move was “political” because Catalan authorities could increase their support for Sabadell and “complicate” the takeover bid, according to analysis firm Bestinver.
© 2024 AFP
