Luke Madeira
BRITISH pensioners in Spain claim to have lost more than a fifth of their spending power over the last two years as a direct result of Brexit.
Richard Hill, vice president of Brexpats in Spain, claims plummeting exchange rates, taxes and a rise in the cost of living have caused significant income losses.
It comes as the pound sunk to a new low of just 1.10 to the euro last week, as worries of a hard Brexit magnified.
The pensioner, who claims he’s around 22% ‘worse off’ since the referendum, believes expats will struggle regardless of whatever deal is reached ahead of Britain’s exit from the EU.
The pensioner added: “The significant problem at this stage with Brexit is the fluctuating exchange rate.
“Obviously fluctuations are normal, however the steady downward trend is seriously affecting people.”
It comes after the Rabobank in London warned that a no-deal Brexit could end in euro-sterling parity, while last week saw the pound plummet to an eight-month low.
British expat Karen Watling, from Sheffield, claims she has lost as much as a third of her monthly budget.
“Over two years this has caused us problems financially,” she told the Olive Press. “Prices and commodities have also risen so it has been like a double hit.”
The exchange rate was an average 1.24 in 2014 before climbing to an average 1.38 in 2015.
However the year of the referendum saw the average fall to 1.22 before falling again to 1.14 in 2017. This year so far has been lower at 1.13 and it currently stands at 1.12.
Brexpats in Spain has called for a government-run internet bank offering basic current accounts, debit cards and the option to carry out international and national transfers online.
The group even suggests ordering RBS – the only bank in the UK in which the government has a stake – to provide a basic facility for expats without a UK address.
“The situation could be eased for many people if they could open a UK bank account, with many having closed theirs years ago having moved to Spain permanently.
As an ex-pat who has abandoned the UK, do not complain that those of us who remain in the UK and accept all the problems of living here, may have affeted your income overseas! If you want to live in Spain – fine – but tou have to accept the cost of doing so.
A no deal exit from the EU would be far less likely if the EU would be more flexible in negotiations and abandon its outdated, politically motivated “one size fits all” policies.
You chose to leave your mother country – I am English, proud od it and wish to remain English, not European.
By the way, I love Spain, would love to live there but if I did I would accept the privilege warts and all!
Sorry to use an overworked heading but:-
Fake News again.
The article says brexit has caused a drop in the exchange rate, that is incorrect.
Brexit has not happened yet.
The drop in the exchange rate is wholly down to project fear and articles like this one.