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THE Junta de Andalucia is making an attempt to journey in to the rescue for border city La Linea because it faces calamity over the potential failure of treaty negotiations with Gibraltar.
Junta President Juanma Moreno met with La Línea Mayor Juan Franco to pledge assist amid rising concern over the post-Brexit panorama.
The city’s dependance on Gibraltar for employment, with one in each three employees incomes their residing on the Rock, implies that any modifications to the border fluidity as a consequence of treaty speak breakdowns might drastically have an effect on the city’s financial system.
READ MORE: Spain’s ‘rogue’ border chief is FIRED after frightening Gibraltar along with his passport stamping marketing campaign
The Junta is contemplating numerous monetary ‘options’, together with pumping larger funds into the impoverished city via elevated regional tax income sharing to imposing a particular fiscal regime akin to the Canary Islands.
These measures can be supposed to deal with considerations of unfair competitors, as Gibraltar’s 15% company tax price contrasts sharply with Spain’s 25%.
The Canary Islands affords a really low company tax price of 4%, though to learn from it corporations should meet sure necessities, corresponding to creating jobs and making investments within the islands.
READ MORE: How Franco’s determination to shut the Gibraltar border backfired: ‘Now we’re extra British than ever’
In the meantime, in 2024 La Linea obtained solely €3,284,885.85 in direct funding from the Junta, one thing which might be bumped up considerably.
The shortage of a finalised EU-UK treaty on Gibraltar creates vital uncertainty for Brits, Gibraltarians and Spanish alike.
Spanish Finance Minister María Jesús Montero has beforehand tied any particular fiscal standing for La Línea to the profitable completion of a UK-Gibraltar settlement, implying the city is by itself if the talks fail.
