New boost to foreign investment: Amazon to build logistics centre in Barcelona region

Barcelona (CNA).- Incasòl, the Catalan Government's subsidiary that manages public land throughout Catalonia, signed on Thursday the awarding of a 15-hectare smallholding to the North American giant Amazon. The plot is worth 30 million euros and is located in El Prat de Llobregat, the same village where Barcelona El Prat airport is located, a municipality 10 kilometres away from Barcelona. Now the leading e-commerce company has a month to formalise the transaction, but it has already celebrated the awarding and has expressed in a communiqué its will "to keep on expanding" its logistics network in Europe. "This means that we are attractive, that we are well-placed and that we have a future" stated current Catalan President, Artur Mas. The awarding arrives a few days after the largest business organisation in Catalonia, Foment del Treball, noted in its 'Report of the Economic Situation' that Catalonia's push for independence hasn't affected foreign investment in the territory. On the contrary, during the first half of 2015, Catalonia attracted 1.959 billion euros, which represents a remarkable increase of 281.2% in comparison to the same period last year.

Thus, the Catalan government has accepted the multinational's offer to acquire this industrial plot of logistical "main use" and "complementary uses related" to the main activity, such as offices, commercial areas and restoration. Amazon's interest in this plot was already made public in 2014 and in November its call option for 30 million euros also became public knowledge.

However, the operation is not yet completed. Amazon will have to formalise the transaction within a month. Moreover, the Metropolitan General Plan (PGM) has been modified to meet the company's requirements, such as buildings of up to 19 metres high and adding the "complementary uses related" to the main activity. These reforms are still pending to be approved.

Even so, Amazon sent out a communiqué on Thursday assuring that it is "really satisfied" with Incasòl's awarding. The company has emphasised its will to "to keep on expanding" its logistics network in Europe and its "commitment to the Catalan and Spanish economies through a constant pace of investment and job creation".

More proof of Catalonia's attractive power

According to Mas, this news proves that "it is absolutely false" that Catalonia's push for independence negatively affects foreign investment "as many have repeatedly said". Following this, earlier this week the largest business organisation in Catalonia, Foment del Treball, stated in its 'Report of the Economic Situation' that Catalonia attracted 1.959 billion euros during the first half of the year, which represents a remarkable increase of 281.2% in comparison to the same period last year. In 2014 foreign investment in Catalonia represented 10% of the Spanish total and one year later this figure has increased to 23%. "This means that we are attractive, that we are well-placed and that we have a future" he stated and added that the awarding "will help many people to get a job" and "reactivate" Catalonia's economy. Following this, Incasòl noted that in logistic centres like this there are normally around 1,000 people working.

 

El Prat de Llobregat's mayor, Lluís Tejedor, described the awarding as a milestone in the reduction of unemployment in the region, which is its "main goal". He pointed to El Prat's strategic location as the main asset influencing Amazon's choice.

Foreign investment and the recovery of the Catalan economy

89% of the foreign investment registered in Catalonia during the first half of the year came from the OECD countries and 65.2% of the total came from EU countries. Regarding the sectors, nearly half of the foreign investment went to the building industry and real estate sector, mainly due to the low value of the real estate assets which Catalonia still has available and which it aims to reduce.

Besides this, Foment del Treball's inform also highlighted the investment in the manufacturing industry, which was around 20% during the first half of 2015.

Regarding the expected growth of the Catalan economy in 2016, Foment del Treball forecast a 2.7% increase in GDP and a decrease in the unemployment rate, which will drop to 15% by the end of next year. According to Guillermo, the recovery of both the Spanish and Catalan economies "is robust".

Spanish funding system affects the most advanced regions

Foment del Treball's economic director also referred to the Spanish funding system, which he considers to be especially negative for those Autonomous Communities which are economically stronger. Guillermo also commented on the recent controversy regarding the special conditions that the Spanish Government imposed on Catalonia in order to receive its share of the Spanish Liquidity Point (FLA) and the delay on this payment. According to Guillermo, this debate was deeply influenced by "the electoral situation" and he forecast that once this period is over, the debate would be "normalised".

Current Catalan Finance Minister Andreu Mas-Colell considered the imposition of extra control measures exclusively on Catalonia "arbitrary discrimination" against Catalan citizens and the Government's suppliers and announced that the Government would take the measures before the Spanish Supreme Court. The imposition of "specific and additional controls" due to "Catalonia's singularity" was presented by the Spanish Finance Minister Cristóbal Montoro as a way to guarantee "transparency" and ensure that “the FLA won’t fund pro-independence whims”. Mas-Colell accused Spain's executive of trying to take political advantage of an "ordinary procedure between administrations" and urged the Spanish government to pay the pending 3,034 million euros from the FLA before the end of the year.