The Ferrovial case: The government was warned and did nothing

When an economic sector is born, it usually consists of hundreds of companies that, little by little, as the sector matures, shrink until only two or three companies remain on the market. Banks and electricity serve as examples. could be Railway, which will vote on its departure to the Netherlands in four weeks at the shareholders’ meeting, went a step further in the birth and development of companies (perhaps), naturally. However, the government did not see it that way and as soon as the decision was announced, it started with harsh personal attacks on Rafael del Pino, the president of the construction company. World He assures that he will even try to inflate the transfer decision within the shareholders’ meeting. In the meantime, the CNMV is analyzing possible restrictions that could exist for Spanish companies that want to list in the United States while remaining in the Spanish market. Because that is exactly one of the accusations Railway move your headquarters outside of Spain: everything is easier from the Netherlands.

Was the Government warned that large companies can make such far-reaching decisions? Have you done anything about it? Well, yes, he was warned and everything says that no, he did not take measures to avoid it.

The Economic Office of Spain in The Hague and the Institute for Foreign Trade (Icex) raised the alarm already in 2020. Namely, Icex has updated the document which says on page 27: «In recent years, many foreign companies have moved their legal domicile to the Netherlands. This is because they find a more flexible company regime here than in their country of origin. Establishing a limited liability company is simple and quick. A public limited company allows for a flexible regime in the treatment of subsidiary benefits and, in addition, gives the main shareholders and management more control over the company through shares with more voting rights. And he continues: «The functions of the president of the management board and the supervisory board can be combined, and there is no mandatory representation of minority shareholders either in the management board or in the supervisory board. Publicly traded companies also have numerous options to protect themselves from hostile takeovers. As a consequence, many foreign companies keep their activity, their headquarters and their tax burden in the country of origin and only carry out a change of legal seat. Will this be the case Railway? It doesn’t seem like it. Fiscal and economic competition exists within the EU. Spain was not careful and now fears that other companies may follow suit Railway. It wouldn’t be strange. Because? Icex, a public body, says so: the large number of international treaties on the avoidance of double taxation that the Netherlands has signed with other countries in the world reinforces the tax advantages of living in the country. According to the magazine wealth, 40% of the 550 largest American companies, 245 Japanese multinational companies and 2485 European multinational companies (including 90% of companies listed on Ibex) have companies registered in the Netherlands.

Definitely, Railway He knows what he is doing and he will do it.