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What it is

Proposal to claw back public aid from companies that relocate

Admitted step 2 of 7 · Unfinished

It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 8 March 2023. Introduced by: Grupo Parlamentario Confederal de Unidas Podemos-En Comú Podem-Galicia en Común.

Official title: Private member's bill for measures against the relocation of strategic economic activities that have received public aid.

Follow this law

Source: Congreso de los Diputados, file 122/000314· updated 11 Nov

Automatic summary, not yet reviewed

  1. The bill would prevent companies that received public aid from moving their industry, activity, or tax or registered address to another State. It defines relocation as that transfer, even if done by a linked company or one in the same group.
  2. It would add a new reason to require repayment of subsidies: if the company relocates or moves its registered or tax address to another State within 10 years of receiving the aid.
  3. It would also regulate the procedure to claw back the money: it starts automatically, the company is guaranteed a hearing, and a decision must be issued within a maximum of 12 months.
  4. The rule would also apply to aid granted before the law takes effect, as long as ten years have not passed since the grant. The Government and the Autonomous Communities would have six months to adapt their subsidy rules.

Who it affects

  • Companies and industries that have received public aid or subsidies: They would have to repay the money if they relocate or move their registered or tax address to another State within 10 years of receiving the aid.
  • Public administrations that grant subsidies: They could start the clawback procedure on their own initiative, with a maximum of 12 months to issue a decision.
  • Workers at strategic companies: The bill aims to prevent closures and relocations that cause direct and indirect job losses.

Words worth knowing

Deslocalización (relocation)
Moving an industry, activity, or production unit, or the tax or registered address, to another State.
Reintegro de subvención (subsidy clawback)
The obligation to repay public money received as aid, plus late-payment interest.
Domicilio fiscal (tax address)
The place where a company is registered to pay its taxes.
Proposición de ley (bill)
A text introduced by members of Congress to become a law. It is not an approved law until the whole process is complete.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 2 of 7 steps. It reached Admitted, and today it is unfinished.

  1. Introduced8 March 2023Someone registers the text in the Congreso.
  2. Admitted14 March 2023The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsnot reachedGroups propose changes.
  4. Committeenot reachedA committee goes through the text in detail.
  5. Plenarynot reachedAll 350 deputies vote.
  6. Senatenot reachedThe Senate can pass it, amend it or veto it.
  7. BOEnot reachedIt is published in the Official State Gazette (BOE) and comes into force.
See the 6 official steps on a timeline
Mar 2023Apr 202311. 8 March 2023: Presentación22. 14 March 2023: Boletín Oficial de las Cortes Generales Publicación desde 14/03/2023 hasta 17/03/202333. 14 March 2023: Calificación44. 17 March 2023: Gobierno Contestación desde 17/03/2023 hasta 27/04/202355. 27 April 2023: Pleno Toma en consideración desde 27/04/2023 hasta 30/05/202366. 30 May 2023: Concluido - (Caducado) desde 30/05/2023 hasta 16/06/2023

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

The legislature ended before it finished. To go on, someone would have to introduce it again in the new Cortes.

It has not been presented again yet.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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