Government facilitates mobility of companies across the country

Moncloa Palace, Madrid

The Council of Ministers approved a Royal Decree Law on urgent measures on the mobility of economic operators across the country.

The Minister for Economic Affairs and Competition, Luis de Guindos, recalled that back in 2015 the government amended the Capital Companies Act to establish that the Board of Directors was the appropriate forum to approve the change of registered office, "unless the Articles of Association provided otherwise". The legislation approved on Friday explicitly states that this exception only applies "when the Articles of Association expressly establish that the Board of Directors does not exercise this power", he explained.

The Royal Decree Law is completed with a transitory provision relating to the transfer of the registered office of those companies with Articles of Association that were approved prior to said reform. In this case, it will be understood that this exception exists in the Articles of Association when, subsequent to the entry into force of this Royal Decree Law, an amendment to the Articles was approved that expressly declared that the Board of Directors is not the correct forum for authorising a change of registered office.

Pool Moncloa / JM CuadradoLuis de Guindos highlighted that the decision on transfers continues to correspond to each company and that, in the same way as prior to the year 2015, this request to change offices is based on a series of "corporate incidents". The Minister for Economic Affairs and Competition stressed that the modification has been "discussed" with other parliamentary groups, "particularly the PSOE [Spanish Socialist Workers' Party] and Ciudadanos".

The Minister for Economic Affairs and Competition stated that the new legislation, which will be published in the Official State Gazette and come into force on Saturday, 7 October, will apply to Spanish and foreign companies with their registered office in Spain.

Renewal of Prepara Plan

The government approved the extraordinary reactivation for a limited period, until 30 April 2018, of the Professional Retraining Programme for those people whose unemployment protection has run out (Prepara Plan). The renewed plan comes as a result of a unanimous agreement reached between the government and the regional governments at the meeting of the Employment Sector Conference held on 18 September.

The Minister for Education, Culture and Sport and Government Spokesperson, Íñigo Méndez de Vigo, underlined that this initiative has a provision of 65 million euros and includes a 425-euro benefit for beneficiaries.

"This will allow many people who have no other source of income to continue covering not only their basic needs, but also to acquire professional qualifications to then find a job, which is the main aim of this government", he remarked.

Social electricity voucher based on income

Pool Moncloa / JM CuadradoThe Council of Ministers regulated the social electricity voucher, which is an electricity bill discount for vulnerable consumers.

The Minister for Energy, Tourism and Digital Agenda, Álvaro Nadal, explained that this new social voucher establishes three types of consumer entitled to a discount according to certain personal circumstances, such as being unemployed or receiving a minimum pension and, by way of a new feature, sets income bands.

In this regard, vulnerable consumers will receive a 25% discount on their electricity bill, extremely vulnerable consumers, a 40% discount, and extremely vulnerable consumers that also receive social service care from the regional governments, a 50% discount
Álvaro Nadal specified that the income of those people who live alone cannot exceed 11,300 euros per annum to be beneficiaries of a reduction in their bill. Families with two minors cannot exceed 19,000 euros per annum. In the case of the extremely vulnerable, these thresholds are half these amounts.

The minister also stressed that those extremely vulnerable consumers that also receive social service care "cannot have their electricity supply cut off under any circumstance".

Furthermore, the cost of the social electricity voucher will continue to be taken on by supply companies according to their market share of customers.

Measure to protect consumers

The Government also clarified the relationship between consumers and electricity suppliers, which will be obliged to notify non-payments to consumers. The minister recalled that at present they are only obliged to notify supply cut-offs.

Álvaro Nadal also remarked that regional government will be connected to the Central Government to facilitate applications for the social voucher. Citizens may directly apply for the voucher to supply companies without the need to present their income tax return because the Ministry of Energy, which is in contact with the Tax Office, will inform them as to whether the applicant is entitled to receive the social voucher or not.

The minister highlighted the consensus reached between practically all parliamentary groups and regional governments to approve this new system.

Access to high-speed Internet

Pool Moncloa / JM CuadradoThe government agreed to directly grant subsidies to contract access services to fixed line high-speed broadband at 30 Mb/s in sparsely populated areas that are difficult to access.

The measure affects individuals, the self-employed, SMEs, not-for-profit organisations and local councils with a population of up to 5,000 inhabitants.

Álvaro Nadal specified that some 1.8 million people living in these areas will benefit from this measure. "They will be entitled to receive a 400-euro subsidy to install Internet at speeds in line with the current situation".

The programme is framed within the raft of measures that the government is developing to reduce the digital gap and guarantee that all citizens have access to high-speed fixed-line Internet.

In this regard, Álvaro Nadal highlighted that Spain is the third-ranked country in the world in the roll-out of fibre optic lines, which now provides coverage for 70% of the population, but still does not reach the whole of the country. Telephone operators took on the obligation to cover the needs of 98% of the population with speeds of at least 30 Mb/s. The measure approved on Friday will cover the remaining 2% of the population.

Dialogue within the law

Pool Moncloa / JM CuadradoWhile taking stock of the week's political developments, the Government Spokesperson highlighted the agreement adopted on Wednesday by the Central Electoral Board - the body that declares and published the results of all elections held in Spain. Íñigo Méndez de Vigo pointed out that the Board unanimously concluded "that no process took place on 1 October 2017 in Catalonia that can be classified as a referendum under any of the forms provided for in the Spanish legal system".

Hence, the minister added, "the figures being presented as results of the so-called referendum on self-determination lack all form of validity because no referendum was officially called and that neither the way in which it took place nor the object of the referendum were legally valid".

The Government Spokesperson mentioned the government's "positive assessment" of the message sent out by the King to the Spanish people on Tuesday, "both due to the time it was made and its content". Íñigo Méndez de Vigo highlighted the defence made by King Felipe VI of the constitutional order, of the validity of the rule of law and self-governance in Catalonia based on the Constitution and its Statute of Autonomy.

"Our democracy, which is a mature, consolidated democracy of people who are free and equal before the law, without discrimination of privileges, also received the support on Wednesday of the main political parties represented in the European Parliament", declared Íñigo Méndez de Vigo. The minister recalled that the European Commission, through its Vice-President, Frans Timmermans, stated that it is fundamental that the constitutions of all Member States are respected and that "the Regional Government of Catalonia has broken the law" and "that all governments are under the obligation to enforce the law with the proportionate use of force".

The Government Spokesperson stressed the need to close the "gap" in the Regional Parliament of Catalonia and recover "harmony" in this region. "The government calls on Mr Puigdemont to return to legality, as we have always said, to this respect legality, and then we can talk and enter into dialogue", he stressed.

Current affairs

Pool Moncloa

When asked about the alleged lack of proportionality in the actions of the State law enforcement agencies in Catalonia on 1 October, the Government Spokesperson recalled that they acted upon the orders of a judge and that their intervention was aimed at avoiding voting and not against individuals. At any event, he claimed, "if people were negatively affected, we all feel sorry for that".
As regards the decision by certain companies located in Catalonia to transfer their headquarters to other locations, the Minister for Economic Affairs attributed this situation to the "irresponsible conduct that generates alarm in business groups".

What is happening, he added, "is very sad, but it is not the fault of the companies, but rather of the irresponsible attitude that generates concern". In these circumstances, it is down to the government to encourage everything that leads to the economic prosperity of Catalonia, he concluded.

Non official translation