The announcement of the early election made by the President of the Spanish Government, Pedro Sánchez, represents a drastic shift in national affairs. Following the results of the municipal elections (and regional elections in some Spanish regions), Sánchez called an early election for July 23, which has a significant impact on the national legislative framework. How does this affect the business sector? What impact does it have on the Create and Grow Law? Does it have any effect on other regulations affecting invoicing and national companies? We analyze it.
Effects of the early election
In addition to being a very important social and political event, the announcement made by Pedro Sánchez represents a fundamental change in the legislative sphere. Primarily, because it shortens the legislative term, which was set to end in November, with all that entails for the processing and approval of laws.
By bringing forward the elections, a series of events occur that change the pace of national politics. The most significant, surely, is the fact that the Parliament is dissolved. Therefore, all regulations and laws that were still awaiting approval or amendment are halted.
Indeed, a political change of this magnitude generally entails, and not only in Spain’s case, the following consequences:
- Changes in the political balance.On the one hand, the early election can 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 a change of government.
- Political uncertainty. During the pre-election period, significant political uncertainty may arise. This could affect the country’s stability and its ability to address urgent issues, as well as the pace of businesses. Companies may feel more reluctant to invest in processes like digitization and digital transformation in view of an uncertain near future.
- Economic impact. In turn, political instability resulting from early elections can 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 early election will generate a period of certain doubts and uncertainty for many companies and specific sectors in the coming months. So, weeks are approaching when we may see certain markets reduce their production and remain expectant awaiting results and potential changes.
Does it affect the Crea y Crece Law?
However, regarding what concerns us most, easyap, does the early election really have a strong impact? Are there major laws that will be paralyzed, as we mentioned at the beginning, and that affect e-invoicing? Does it have any impact on the Crea y Crece Law?
We begin by answering the last of those three questions. The early election does not have a direct impact on the Crea y Crece Law. This law, as we have already detailed in many other articles on our blog, is key to the future development of the national business fabric. Even, we held a webinar in March to inform about all of this. And another webinar in December with over 200 attendees.
The fact is that the Crea y Crece Law, for now, will not be affected by this turn of events. Mainly because the Law 18/2022,which is its official name as published in the BOE (Official State Gazette), was approved on September 29, 2022. In turn, came into effect in Octoberand has been modified with various updates in the subsequent months.
However, the early election does affect something important: during the coming weeks (and very possibly in the first months until the new Spanish Government is officially formed), we will not see any kind of change, progress, or modification in the law.But not only in the Create and Grow Law, but in no other either.
Likewise, a total of more than 60 laws will remain unapproved.The Families Law, the Food Waste Law, the Sustainable Mobility Law, or the Public Function Law, among others, are some of the most prominent in the media. In this regard, it remains to be seen what will happen with them after the elections on July 23.
The Digital Kit and the brake on digitalization
Perhaps, in what most affects easyap, there are two points where this early election could have a more significant impact. We are talking about what is known as Digital Kitand the digitalization of the business fabricin general.
On the one hand, the Digital Kit aidthat are already 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, as long as companies have adhered to it since it came into force.
However, the political and business uncertainty inherent in the early election may have a negative effect on digital transformation of the Spanish business fabric. It is possible that some companies reconsider making the investment theywere 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 its progress
However, the decision to postpone the modernization process is something we at easyap do not recommend.The ‘Crea y Crece’ Law remains in force and will continue to be so.What is clear is that, due to its multiple advantages, it is practically impossible to think that the new executive will overturn or remove it.
The mandatory electronic invoicing in Spain is a reality. A fully established reality, also in Europe,and it will not change due to how much it helps public companies and what it will contribute to the national business fabric.
It is more than proven, from what we have observed since digital invoicing was implemented, that it offers the following benefits:
- Efficiency and cost savings.It automates the process of issuing, sending, receiving, and archiving invoices, which reduces costs associated with printing, postal delivery, and physical document storage. Therefore, it helps you be more efficient in administrative and accounting management and save resources.
- Reduced processing time.By eliminating paper invoices, electronic invoicing streamlines the workflow. You generate and send them instantly, reducing sending and receiving times, shortening payment cycles, and improving cash flow.
- Lower probability of errors.It minimizes human errors 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 especially useful for audits, as you can easily access and analyze documentation more efficiently.
- Sustainability.By eliminating paper use and reducing the physical transport of documents, you protect the environment. You stop consuming certain natural resources and produce fewer carbon emissions associated with the traditional invoicing process.
The benefits vary depending on the company size and sector. However, what both companies and authorities from any political side are clear about is that digitalization is a reality and a necessity. Something that is completely unstoppable and will not halt its progress, regardless of any political change.
This is also how we understand it at EasyAP, where we will continue to develop and implement our solution in Spanish companies across multiple sectors. Organizations that will benefit from the advantages we provide, beyond just invoicing software. With our system, you will also have:
- A system capable of digitizing and storing all invoices and related documents. This way, you can search, access, and manage information more conveniently and eliminate the need to file and store physical documents.
- Software with functions to automatically validate and verify the integrity of invoice data. This way, you can identify and resolve potential errors or discrepancies before payments are processed.
- A solution for controlling workflow and electronic approvals, allowing different departments and involved parties to review and approve invoices electronically.
- Software that you can integrate with other business systems, such as accounting management systems or ERP (Enterprise Resource Planning). This facilitates data transfer and information synchronization between different platforms, saving you time and preventing task duplication.
These are just some of the general advantages our software can offer you. In fact, we haven’t even mentioned the employee expense portal that we can also implement. Or, even, the fact that with easyap you pay per invoice processed and not a fixed monthly cost, which means we adapt to companies of all types and sizes. Do you want to get to know us and see for yourself?
