Spanish economy feels the heat of middle east conflict
The escalating conflict in the Middle East is already having a direct impact on the Spanish economy, particularly for freelancers and small businesses. Diesel prices have surged by 28% since the Iran attack, while gasoline costs have risen 16%. For a self-employed worker who relies on their vehicle for transportation, this translates to an additional €288 per month in expenses.
Autonomous workers face squeeze
As the president of UPTA, Eduardo Abad, emphasizes, 'Autonomous workers won't be able to pass on this price increase to the end consumer, which will further reduce their margins and put the viability of many activities at risk.'
In response to the crisis, the Spanish government has deployed a package of urgent measures worth €5 billion to cushion the economic blow. The plan, set to be voted on by Congress on Thursday, includes direct aid, financing facilitations, and liquidity guarantees for companies particularly exposed to rising costs.
Regional responses vary
While the central government outlines the overall framework, regional authorities are activating their own responses at different paces, creating a patchwork of support. Some regions, like Murcia, have quickly mobilized economic packages to help companies facing immediate liquidity issues. Asturias, meanwhile, is focusing on facilitating access to credit through public guarantees.
In the Balearic Islands, the regional government is preparing a decree that will combine tax cuts with direct aid, while Catalonia is working on a broader plan encompassing both businesses and families, earmarking €300 million.
The Basque Country is prioritizing speed, bolstering support for small businesses with €257 million and authorizing public guarantees of up to €450 million to help businesses and freelancers access financing in the face of declining revenues.
Other regions, including Galicia, Castilla-La Mancha, and La Rioja, are taking a more cautious approach, holding meetings with affected sectors but yet to concretize aid. The Madrid regional government, led by President Isabel Díaz Ayuso, has asked the central government to lower the VAT on electricity, gas, and fuels, while the Valencian government is advocating for the central government to bear responsibility for implementing measures.