Basque companies are responding very skilfully to the economic globalization challenge, constantly increasing their presence in the external markets in recent years, and achieving a high spread of the economy, even higher than countries such as Germany, and very superior to Spanish State as a whole. Besides, significant progress is being made in the industrial diversification, with the start of very dynamic new activity sectors and with a higher export potential, such as the aeronautic components and Bio-science sectors, which are increasing the export of medium-high and high technological content products.

Exporting Companies

The exporting trend of the Basque economy (exports on the GDP), in the last available official analysis, stands at 28.9%, somewhat above most countries in the same economic scope, and at levels similar to Italy and the United Kingdom and only exceeded by the exporting potential of Germany, because the Basque Country has a huge number of companies that specialize in exports, witch is why most of its production is earmarked for external markets. [move up]

Foreign Investment: Legislation

Legislation on foreign investment could be considered very liberal, although it is regulated in some cases and requires a certain amount of paperwork, since there is an administrative process of “ex – post” declaration of investments, with administrative, economic and statistical aims. Nevertheless, in some cases of investments originating from or destined for territories or countries classified as tax havens, apart from the aforementioned communication, previous administrative notification is required.

The operation should comply with the administrative requirement established in the corresponding sector arrangement if external investments require submiting to special regulations, such as aviation, radio, minerals and mineral raw materials of strategic interest and mining rights, television, gambling, telecommunications, private security, manufacturing, trade, weapons and explosives for use by civilians, distribution and activities connected with national defence. [move up]

Investments made by Foreign Firms in Basque Companies

Basque Country is an appealing region to attract foreign investments. The industrial tradition and its know-how are connected to its strategic location, its communications network, the highly specialized subcontracting business infrastructure and its technological and energetic infrastructure network. Years ago, many transnational companies chose to invest in the Basque Country, showing a very high level of satisfaction. Nowadays, they are the best ambassadors of the Country through-out the world.

From the nineties onwards, both trade and the flow of international finance have shown a cyclical development, with years of great expansion and slight setbacks, which have, logically, affected foreign investment in the Basque Country.

Nevertheless, the part played by the Basque Country in gaining foreign investment, stands at between 8% and 9% of the total (8.4% in 2006 according to the INE), only behind Madrid and Catalonia. Most of the investments come from the European Union countries, although in the last years, the USA is becoming relevant in the ranking of investing countries, especially in the sectors that are technologically more developed and have higher growth possibilities. There are presently more than 700 companies in the Basque Country with a significant, or majority, participation of foreign companies. [move up]