Brexit dismantling, good news for the Ibex 35

The arrival of Keir Starmer Downing Street is good news for the United Kingdom. It is for many reasons, but there is one that stands out above all others: stability. The return to power of the from the Partido LaborGoing through the big door represents a change of cycle after 14 years of dominance of the Conservative Party (Tory), with leaders of unfortunate memory in the ‘British’ memory such as David Cameron, Theresa May, Boris Johnson, Liz Truss y Rishi Sunat. It is a vote of punishment for the policies that led to the ‘Brexit‘ and leaving the European Union (EU). The British are disappointed and disillusioned with the adventure, according to a majority of polls. If the fateful referendum of June 23, 2016 were repeated today, the United Kingdom would opt by a majority for the ‘Remain‘ (permanence). There are those who wonder today if it would be possible for the country to undertake the road back, the ‘Briturn‘, but what is certain is that it will not be an easy or quick task.

Any scenario of the United Kingdom’s re-entry into the European Union (EU) would be positive for both parties, especially in a scenario of weakening of the union due to the extreme turn that France and Germany are taking. British have learned the lesson of populismThey have suffered the impoverishment of the breakup, the economic contraction resulting from the flight of companies and talent to the euro, with Ireland and the Netherlands as the main recipients of this corporate migration that many underestimated. lifting of virtual and bureaucratic borders with European partners has been the straw that broke the camel’s back for citizens, who fell for the lies and hoaxes of sinister characters such as Nick Farage on the treasure of the paradise of independence. They never arrived, on the contrary, the Brexit bills have raised blisters of regret in that country.

From the prism of the world of money, the scenario of political peace, predictability and vision beyond the short term It is a perfect cocktail. Labour came to power with simple formulas and a sensible programme that includes, among other things, adjusting the public accounts, mitigating the impact of Brexit on businesses and households, improving working conditions, alleviating problems of access to housing, strengthen migration policies, security and fightneighborhood by neighborhood, against antisocial behavior. The latter could be signed by a far-right party, but it is Labour’s recipe for adapting to a country that has changed. Beyond these general issues, Starmer has promised to push for a reduction in the price of Premier League football tickets, a gesture for the gallery.

The impact of what happens in United Kingdom It is much higher for companies in the Ibex 35 and the Spanish economy, that the evolution of France from Sunday. At first glance, the industry of turismo The UK receives 50% more visitors and revenues each year from the British Isles than from France, and the British have a greater presence in large areas of the coast. Only a group of seven listed companies Iberdrola, Santander, Telefonica, Ferrovial, FCC, IAG from Sabadell They manage businesses that represented more than 40 billion euros in revenue in 2023. Until the 2020 pandemic, the biggest fall in the Spanish stock market in its entire history was the Friday after the Brexit vote. That day, the Ibex 35 It fell by -12.35%, four times more than the Ftse 100 or twice as much as the Cac French or the Dax German.

Financial links with the City of London are long-standing, with many Spanish fortunes living on the Madrid-London air bridge. It is no coincidence that the process of airline concentration years ago led to Iberia joining British Airways. The figure of Starmer could be an oasis for Spanish economic diplomacy on the verge of foreseeable friction with France. For example, if he wins Bardella-Le Penthe future Parisian government has in its program a kind of energy ‘Frexit’ to reduce the electricity bills of the French. Nuclear power is key for the price stability of the EU electricity system and also in Spain.

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