The Basque Agency for Business Development calls for “quick measures and aid” for companies

Aitor Urzelaigeneral director of the Basque Agency for Business Development (SPRI) has requested, in an interview with ETB, “quick measures and aid” for companies affected by the effects of the invasion of Ukraine.

On the one hand, Urzelai has asked the institutions to establish “in some way limits or limits” on the price of energy and raw materials. On the other hand, he has also underlined the importance of decoupling the price of energy from that of gas, with the aim of making electricity more affordable.

Finally, he has asked the European Union to offer a temporary regulatory framework “so that the different governments have more flexibility when it comes to offering direct aid to companies”. In this sense, he has also requested that the process of European funds be streamlined.

As he explained, the war in Ukraine has caught the companies of the Basque Autonomous Community “in the process of recovery, but not yet fully recovered”. After the decline in gross domestic product in 2020 and the partial recovery in 2021, “uncertainty” has now returned, a clear “enemy of the economy”.

The markets of Russia and Ukraine are “quite important” in the economy of the CAV. Proportionally, it has more weight in imports, and for some companies in particular it is “important”. Many contracts have been suspended, among other reasons, due to logistics problems or sanctions.

“The most worrying thing is imports, due to inflation and the lack of raw materials,” said Urzelai. The profitability of some companies is “in doubt”, as costs have risen a lot. In that sense, in some plants there are “specific stoppages”.