The Deal
We can expect a lot of hype, as usual.
Interesting to look at the facts now that the deal has been published in the Spanish press.
The big question was always the level playing field and whether the UK will be free of EU regulations.
Well, yes, and no.
The UK has a tariff free trade, but it has agreed to keep to EU standards.
It is free to make any changes it wants to, because it is free of EU laws.
But the sting in the tail in the deal is that if the EU considers that it has made changes which give the UK an economic trading advantage then the EU can impose punishment on the UK by imposing tariffs within 20 days, and if the UK decides to subsidise UK exports the EU can impose sanctions in the form of tariffs within 60 days.
These were conditions demanded by the EU and which the UK eventually agreed to.
So most analysis is that the UK will be tied to EU regulations indefinitely.
Of course the only judgement is the financial markets.
What did the pound do against the euro?
Rose by 1% and now today fallen again by 1%. Currently 1.09.
This is because the financial markets have decided that it is a bad deal for the UK, especially because financial services are not included, and these account for 80% of UK GDP.
But of course none of this will prevent Boris claiming a great success.
Nor will it prevent most of the UK media following the “good news”.
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As for any effect of local housing prices, we wait to se how all this will affect demand from the UK.
So far it is on the rise.
But most of us did not come to Spain as a property investment.
We came here for a better quality of life.
