A “containment barrier” to prevent grocery prices from soaring in Ibiza due to the war

“We have addressed issues such as aid and the economic effects derived from the war in the Middle East”, said Vicent Marí, president of the Consell de Ibiza, following the Social Dialogue Table meeting with Pimeef, CAEB, CCOO and UGT.

“Alongside the package of aid from the central government, the Balearic Government also announced on Friday a decree law to mitigate the effects of the war, including €75 million in various lines of liquidity and financing for companies and self-employed workers”, Marí explained. He also highlighted “€36.75 million in direct aid for the most affected sectors, especially the primary sector, transport and commerce, industry and construction”.

Marí added that the Consell will complement these measures within its areas of responsibility, with specific support for the agricultural, livestock and fishing sectors, as was done during the war in Ukraine, when “direct aid was granted to fishermen’s associations and support lines were created for the purchase of feed and fertilisers”. These measures, together with those announced by the government, “should act as a containment barrier against a possible rise in prices, with the aim of preventing the increase in the cost of the shopping basket and inflation from being passed on to the people of Ibiza”.

Will reserves be used?

“One very important aspect we have also considered is simplifying administrative procedures so that all these aid packages can be effective and reach businesses quickly”, Marí said. “All the support we can provide to minimise this impact is more than necessary, and all administrations must pull in the same direction. The Social Dialogue Table reflects this shared intention to define the framework for distributing these funds”.

He also pointed out that, given the situation, local councils and the Consell should be allowed to use their financial reserves to expand these aid measures: “Eliminating fiscal rules would make it easier for us to contribute more funds. This is something both trade unions and business organisations should continue to raise with the Government”.

Speeding up bureaucracy

“We must try to streamline all administrative procedures so that aid arrives on time”, said José Antonio Roselló, vice-president of CAEB and an economist present at the press conference. “We see this as essential for these measures to truly make sense”.

According to Roselló, “the key to all these measures is to soften the impact on companies’ operating costs”. He added that the situation is being “continuously monitored”, describing it as highly volatile, with measures being adopted gradually.

For his part, Alfonso Rojo, president of Pimeef, stated that “the aid is already having an effect. The price of the shopping basket is not going to increase by 40% overnight; however, for the past 15 days, costs for businesses have already risen. Fuel costs, thanks to last week’s aid, can be somewhat mitigated”.

However, he warned that the most affected sector—professional transport—still lacks sufficient support: “The sector has had to absorb a fuel increase of between 60 and 70 cents per litre in just 15 days, in addition to rising maritime freight costs”.

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