Recovery of economic activity in Spain

The alliance of different sectors within the industry, including the participation of the construction sector, has managed to establish that the Government, together with the Ministry of Industry, activates a series of measures with the aim of promoting both the economic recovery in Spain, such as national and international demand in the business sector. Among the 10 proposals presented, is to promote the activity of Construction, auxiliary sectors and related services.

The Alliance for the Competitiveness of the Spanish Industry, constituted by ANFAC (automotive), AOP (refining), ASPAPEL (paper), FEIQUE (chemistry and pharmacy), FIAB (food and beverages), OFICEMEN (cement) and UNESID (steel industry) , has presented to the Government of Spain, as well as to the parties with representation in the parliamentary arch, a comprehensive program of measures based on 10 proposals to promote, as a priority and urgent matter, both general industrial activity and that of all the tractor production sectors, with the aim of relaunching the economy as soon as possible. The measures are aimed at stimulating both national demand and the international competitiveness of the business fabric.

The Spanish productive industry generates 13% of GDP and 12% of employment directly, which reaches 43% of GDP and 30% of employment if their indirect effects are added. The jobs it provides are also of high quality in terms of salary, stability and training. It is also responsible for 92% of exports and more than 50% of private investment in R & D & i.

The Spanish industry is being a fundamental lever to combat the pandemic by enabling the essential services and products that Spanish society requires to be able to face it. It is also being, directly, the strongest economic base in our country at a time as critical as today.

Despite its relevance, there are factories, such as those in the automotive sector, that have been forced to close due to the escalation of the pandemic and the shortage of supply, thus dragging other companies in the value chain.

In this context, the Alliance for Industry Competitiveness has urged the Government to activate, under the coordination of the Ministry of Industry, a package of measures whose implementation it considers essential to take the first steps towards the recovery of economic activity in Spain. The program is based on the following 10 priority proposals:

  1. Encourage industrial investment projects by establishing, for this, an Incentive Line integrated into the Reindustrialization Plans and Strengthening of Industrial Competitiveness of the Ministry of Industry, with differential conditions that favor their execution and the generation of solid and sustainable jobs.
  2. Boost national and international demand in the Automotive sector, which, with a strong export capacity and innovation and technology, generates practically 10% of the GDP of our country. To do this, it is proposed to activate a short-term national shock plan to support demand for the renewal of the car fleet, with all the available technologies, that will help the global recovery of the market, as well as the implementation of powerful measures to support recharging infrastructure.
  3. Promote the activity of Construction and the auxiliary and related services sectors, since they directly and indirectly account for 14% of GDP. To this end, they propose, among other measures, the immediate launch of a sustainable investment program in infrastructure and public housing, accelerate public investments already tendered in transport, hydraulic, energy, environmental or equipment infrastructures; or the implementation of a comprehensive housing rehabilitation program (primarily in the field of energy efficiency).
  4. Design a staggered opening plan for retail and hospitality, for which it will be necessary to develop a progressive reopening plan that optimally and effectively recovers these activities, although it must be subject to the prevention requirements determined by the Authorities .
  5. Reduction of Energy Costs, since, although the current situation has generated abnormally low electricity prices, future markets continue to show high prices and again higher costs than those of our competitors. Therefore, it is necessary to tackle measures that help to narrow these margins or compensate them in order for the industry to gain competitiveness, including: the suspension, during the reactivation stage, of the generation tax; complete the approval of a Statute of the Electrointensive Consumer; guarantee, by means of the appropriate credit modifications, the maximum amount for the compensation of indirect CO2 costs and review the remuneration for the operation and investment of power plants associated with renewable sources, cogeneration and waste related to industry, taking into account It counts the current prices of the electricity market, among other measures.
  6. Promote Export and access to foreign markets, given the fall in domestic consumption, in order to be able to maintain the productive activities of the industrial fabric and guarantee the direct, indirect and induced employment it generates. To this end, it is proposed to act against restrictions on international trade and the total or partial closure of borders that could produce protectionist measures on the operation of supply chains; make it possible to postpone the payment of import duties without interest and promote in Europe the flexibility of terms for customs processes and guarantee requirements.
  7. Increase efficiency in the transport of goods and in the logistics chain, a fundamental factor in guaranteeing the supply of raw materials and the final product that reaches the consumer. To this end, it is proposed to speed up transit through border crossings and ports; declare strategic products to those related to the Spanish industry, with the consequent reduction of port fees; temporarily increase the maximum authorized mass of road freight vehicles to 44 tons and temporarily suspend highway tolls for industrial vehicles destined for freight transport.
  8. The application of specific financial measures such as the provision of credit coverage in commercial operations or guarantee payments from both public administrations and private companies with strict application of the Late Payment Law.
  9. Moratorium on the imposition of new tax figures on the industry since, given the current situation, it is necessary that the Public Administrations do not introduce new tax figures that reduce the competitiveness of the industry, the productive sectors in general or consumption, situations that would weigh down seriously economic recovery and job creation.
  10. Facilitate the prevention and control of COVID-19 in the workplace. For this, the competent authorities must establish guarantee systems for the supply and acquisition of PPE that allow to continue with the business activity and, simultaneously, the National Health System must provide reliable diagnostic tests to prevention services.

Taking into account these 10 key axes for economic recovery, the Alliance considers it essential that the Government expedite the implementation of an effective program that protects and promotes the competitiveness of the industry, as well as of all the productive sectors as a whole in the national and international market so that the industry can contribute with all its potential to the necessary social and economic reconstruction after the health crisis, taking into account its relevant weight in the creation of wealth and employment.

Download  10 Proposals for the recovery of Economic Activity in Spain, here

Original Source: Oficemen