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27 January 2013

Spain addresses fragmentation of its internal market

On Friday the Spanish Council of Minister approved a report on draft legislation set to improve the unity of the internal (national) market, for an estimated gain of 0.15% of GDP (€1,500m) per year for 10 years.
The scheme calls for a single license to allow a firm to trade in all autonomous communities (regions) throughout the country, instead of up to 17 procedures. A new dedicated body will bring together central and regional governments to monitor implementation, which will also use a common electronic database to support control and supervision functions. Conflict resolution procedures will be simplified, under the future National Commission for markets and competition. The report offers some detail on each of these points. Our correspondent (Prof. Gamero, Seville) estimates that the new legislation, which was negotiated with the autonomous communties, will be passed by Parliament before the summer, once the RIA has been drafted and endorsed by Governement.

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