Last October, the damage wreaked havoc on the business fabric of the affected areas, especially in Valencia. Almost two months later the balance is devastating. In Valencia, 69,791 companies suffered the consequences of the flood; in Malaga about 3,000, in Cuenca 90 and in Albacete, 72. In total, almost 73,000 companies have been affected by the catastrophe, about half of them self-employed, according to figures from the employers’ association.
One of the most punished sectors has been commerce, with 8,000 businesses affected and, according to a survey by the Spanish Confederation of Commerce, 21% will not reopen their doors.
Given this situation, last Thursday the Minister of Economy, Carlos Body, met with representatives of the Spanish Federation of Appliance Traders (FECE)integrated into CEOE, who asked for measures to help those affected renew lost belongings, while helping commerce in the area.
Specifically, as the general secretary of FECE explained to ABC, Alfredo Gonsalvezthe minister was requested to eliminate or reduce VAT for the trade of household appliances during the next six months, in areas affected by the tragedy, or taking into account postal codes. Likewise, a ‘renewal plan for express replacement of new appliances’ was requested, with aid of between 150 and 250 euros, to be able to face the replacement of the 70,000 large appliances that were lost with the damage. To the extent that many of these appliances disappeared during the flood, the Executive is asked to rescind the rule of handing over an old one when the new one is purchased.
The application of temporary VAT and tax exemptions for the acquisition of industrial vehicles in the province of Valencia and other affected areas was also proposed to the minister. Likewise, the possibility of facilitating waste management, especially with its documentation, with the corresponding consortia and making environmental obligations at points of sale more flexible, was discussed with Carlos Body.
The minister “did not rule out” implementing this aid, which could be approved from the European social fund, although he did not firmly commit to its approval, as Gonsálvez explained to ABC.
The 8,000 businesses affected by the damage represent 23% of the total although the weight of its turnover, more than 20,000 million euros, is greater, 36% of the turnover of all commerce in the area.
In terms of employment, the affected businesses employ 70,185 workers, representing more than 30% of total employment in the affected areas.
In short, the employers’ associations estimate that the damage has taken away 1.8 billion euros in the business fabric of all the affected areas. And a good part will not be recovered.
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