On September 12, the minister of Economy, Trade and Industry, Carlos Cuerpo, surprised observers by unveiling his plan for a novel Regime 18, or the eighteenth autonomous community, a theoretical framework. He announced it during a meeting with representatives from the General Council of Economists and explained that the proposal aims to cut the administrative and bureaucratic burdens on businesses and to push Spain’s single market forward.
What would the ’18th autonomous community’ look like?
[–>
As explained by Minister Cuerpo, it would be a theoretical autonomous community where a minimal, commonly accepted set of rules would apply to conducting business. Companies that accepted the so‑called passport could operate in any autonomous community or municipality, without needing to satisfy additional bureaucratic burdens tied to each territory. — Prensa Ibérica
Would this run against the competences of autonomous or municipal governments?
[–>
Economy authorities want to avoid that outcome. To this end, the plan would be negotiated with regional and municipal governments within the Sectoral Conference for Regulatory Improvement and the Business Climate. The objective, according to Cuerpo, is to agree on a set of “minimum common requirements” so that a company meeting them can work in any autonomous community without extra demands. “We will work together from a constructive stance and always with scrupulous respect for the competence framework to meet this important demand from businesses within a reasonable timeframe,” the minister said in a recent interview with Prensa Ibérica.
The 2013 Law on the Guarantee of the Single Market, approved by the PP government, sought to advance by removing regulatory obstacles through the so‑called single license. Yet the Constitutional Court nullified that portion of the law for infringing autonomous competences. Hence the current approach aims to push the concept forward via consensus with autonomous communities and municipalities, which would need to implement it within their own regulatory powers.
Where does this idea come from?
[–>
The proposal, as explained by Cuerpo, draws from the Letta Report, the document presented by former Italian prime minister Enrico Letta last June to advance the EU single market. Beginning with a Europe of 27, Letta proposed creating the Regime 28, also called the State 28, as a shortcut to enable companies to operate more easily across EU member states without divergent red tape. Cuerpo said he has shared his national plan with Letta, who reportedly expressed satisfaction. The Spanish minister sees the Spanish Regime 18 as a seed that could form the basis for talks with Portugal and eventually push forward at the European level. “We want to make our national contribution to this effort. The aim is to advance the Spanish, peninsular, and European single market,” the minister summarized.
When could it become effective?
[–>
Everything hinges on how negotiations with autonomous communities and municipalities progress. In the meantime, the minister intends to operate within the Sectorial Conference on Regulation, which falls under his ministry, so that before year’s end a diagnosis and a concrete list of measures can be laid out to advance the Regime 18 objective. — European sources, cited by Prensa Ibérica
Why is it important to advance market unity?
[–>
In a report on the single market, the Institute of Economic Studies notes that meeting administrative burdens tied to regulatory fragmentation across communities imposes costs on businesses estimated at 1.5% to 2.5% of GDP. In 2023 euro terms, that translates to roughly 22 to 37 billion euros of lost GDP. The study, linked to CEOE, argues that freeing these resources and improving the regulatory framework would boost long‑term growth by about 1.5% to 3% of GDP, with potential gains higher if Europe’s regulatory climate also improves. — IEE, cited by CEOE
IEE points to Madrid’s October 2022 open market law as a model, allowing companies legally established elsewhere in Spain to operate freely in the Madrid region without any extra requirements. — IEE
[–>
In its ongoing Spain reports, the European Commission highlights regulatory fragmentation as a key factor limiting business creation. The Brussels institution notes that 60.5 percent of firms say regulation is a major obstacle to long‑term investments in Spain, well above the EU average of 29.6 percent in 2022. It also points out that in some autonomous communities, regulatory barriers to retail trade continue to hinder competition, making Spain one of the most restrictive member states regarding retail regimes, particularly in retail operations. — European Commission
<!–]