The announcement of the early elections by Spanish Prime Minister Pedro Sánchez represents a drastic shift in the national landscape. Following the results of the municipal elections (and regional elections in some Spanish regions), Sánchez called early elections for July 23, which has a significant impact on the national legislative framework. How does this affect the business community? What impact does it have on the Create and Grow Law? Does it have any effect on other regulations affecting turnover and national companies? Let's take a look.
Effects of early elections
In addition to being a very important event on a social and political level, the announcement made by Pedro Sánchez represents a momentous change in the legislative sphere. Mainly because it shortens the legislative term, which was due to end in November, with all that this entails in terms of the processing and approval of laws.
With the elections brought forward, a series of events unfold that change the pace of national politics. The most significant, surely, is the fact that the Cortes are dissolved. Therefore, all rules and laws that were still pending approval or modification are now paralyzed.
The fact is that a political change of this magnitude generally entails the following consequences, and not only in the case of Spain:
- Changes in the political balance. On the one hand, early elections may alter the existing balance of power. Likewise, with the reconfiguration of political majorities and coalitions, certain laws that were already being processed may not be enacted in the future after the change of government.
- Political uncertainty. During the run-up to the elections, there may be significant political uncertainty. This could affect the country's stability and ability to address urgent issues, as well as the pace of business. Companies may be more reluctant to invest in processes such as digitization and digital transformation in view of an uncertain near future.
- Economic impact. In turn, the political instability resulting from early elections may affect markets and investor confidence. This could have an impact on the country's economy in terms of economic growth, investment, and employment.
Therefore, the advance will generate a period of uncertainty and doubt for many companies over the coming months, particularly in certain sectors. So, in the weeks ahead, we may see certain markets reducing their production and remaining expectant awaiting results and changes that may occur.
Does it affect the Create and Grow Act?
However, in terms of what concerns us most, easyap, does the early election really have a powerful impact? Are there any major laws that will be paralyzed, as we said at the beginning, and that will have an impact on electronic invoicing? Does it have any impact on the Create and Grow Law?
Let's start by answering the last of these three questions. The early elections have no direct impact on the Create and Grow Law. This law, as we have already detailed in many other articles on our blog, is key to the future of the national business fabric. In fact, we held a webinar in March to provide information on all of this. And another webinar in December with more than 200 people.
The fact is that the Create and Grow Act, for the time being, will not be affected by this change in the script. This is mainly because Law 18/2022, which is the official name under which it is published in the BOE, was approved on September 29, 2022. In turn, it came into force in October and has been modified with various advances in the months since.
However, the early elections do have an impact on something important: over the coming weeks (and quite possibly in the first few months until the new Spanish government is officially formed), we will not see any changes, advances, or modifications to the law. This applies not only to the Create and Grow Law, but to all other laws as well.
Likewise, more than 60 laws will not be approved. The Family Law, the Food Waste Law, the Sustainable Mobility Law, and the Civil Service Law, among others, are some of the most high-profile. In this regard, it remains to be seen what will happen to them after the elections on July 23.
The Digital Kit and the slowdown in digitization
Perhaps, in terms of what most affects easyap, there are two points where this early election could have a more significant impact. We are referring to what is known as the Digital Kit and the digitization of the business fabric in general.
On the one hand, the Digital Kit grants that have already been approved and granted to companies will not undergo any changes. These subsidies are part of a program already approved by the government and will continue to be granted, provided that companies have joined the program since it came into effect.
However, the political and business uncertainty inherent in the advance may have a negative effect on the digital transformation of the Spanish business fabric. It is possible that some companies will reconsider making the investmentthey were going to have to make in their digital transformation. Or, at least, postpone it and wait to see what happens with the new government.
Electronic invoicing will continue to advance
However, at easyap, we do not recommend postponing the modernization process. The Create and Grow Act remains in force and will continue to do so. What is clear is that, given its many advantages, it is practically impossible to imagine that the new administration will overturn or repeal it.
Mandatory mandatory electronic invoicing in Spain is now a reality. A reality that is now fully established, also in Europe, and one that is not going to change, given how much it helps public companies and what it will contribute to the national business fabric.
It has been proven beyond doubt, from what we have seen since the introduction of digital invoicing, that it offers the following benefits:
- Efficiency and cost savings. Automate the process of issuing, sending, receiving, and archiving invoices, reducing the costs associated with printing, mailing, and physical document storage. This helps you become more efficient in your administrative and accounting management and save on resources.
- Reduced processing time. By eliminating paper invoices, electronic invoicing streamlines workflow. You generate and send them instantly, reducing sending and receiving times, shortening payment cycles, and improving cash flow.
- Lower probability of errors. Minimizes human error and reduces the possibility of invoices being lost or misplaced.
- Traceability and auditing. Electronic invoicing provides a detailed electronic record of all commercial transactions, facilitating traceability and tracking of operations. This is particularly useful for audits, as you can easily access documentation and analyze it more efficiently.
- Sustainability. By eliminating the use of paper and reducing the physical transport of documents, you are helping to protect the environment. You are no longer consuming certain natural resources and you are producing fewer carbon emissions associated with the traditional invoicing process.
The benefits vary depending on the size of the company and the sector. However, what both companies and authorities on all sides of the political spectrum are clear about is that digitalization is a reality and a necessity. It is something that is completely unstoppable and will not slow down its progress, no matter how much political change there may be.
This is also how we understand it at eaysap, where we will continue to develop and implement our solution in Spanish companies across multiple sectors. Organizations that will take advantage of the advantages we offer, beyond just invoicing software. With our system, you will also have:
- A system capable of digitizing and storing all invoices and related documents. This will allow you to search, access, and manage information more conveniently and eliminate the need to file and store physical documents.
- Software with features to automatically validate and verify the integrity of invoice data. This allows you to identify and resolve potential errors or discrepancies before payments are processed.
- A solution for controlling workflow and electronic approvals, allowing different departments and individuals involved to review and approve invoices electronically.
- Software that you can integrate with other business systems, such as your accounting management system or ERP (Enterprise Resource Planning). This facilitates data transfer and information synchronization between different platforms, saving you time and avoiding duplication of tasks.
These are just some of the general advantages that our software can offer you. In fact, we haven't even mentioned the employee expense portal that we can also implement. Or the fact that with easyap you pay per invoice processed rather than a fixed monthly cost, meaning we can adapt to companies of all types and sizes. Would you like to get to know us and see for yourself?
