Catalan business leaders have raised the alarm over the escalating conflict in Iran and the wider Middle East, warning of severe economic consequences for the region’s thousands of small and medium-sized enterprises (SMEs). Following a high-level meeting with the Catalan government, they highlighted the immediate threats of rising energy prices and crippled global supply chains.

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Business leaders voiced their concerns during an extraordinary session of the Social Dialogue Council of Catalonia on Saturday, convened to address the growing geopolitical crisis. President Salvador Illa presided over the meeting, held at the historic Palau de la Generalitat, which brought together government officials, business confederations, and trade unions.

SMEs Must Not Be the ‘Weak Link’

Antoni Cañete, president of the SME association PIMEC, issued a stark warning that smaller businesses must not bear the brunt of the economic fallout. “Small and medium-sized enterprises cannot once again be the ‘weak link’ in the face of the economic consequences of the conflict developing in Iran and the Middle East,” Cañete insisted.

He stressed that the danger is far from abstract. “This conflict has a real, tangible impact on SMEs,” Cañete explained, as reported by Europa Press. He also highlighted the “immediate impact on the energy market and, above all, on the global logistics sphere.” His concerns align with analyses from international trade experts. These experts warn that regional tensions could trigger a significant ‘logistics shock’ for global trade, affecting sea and air freight, and potentially causing liquidity problems for smaller firms.

A Call for Calm and European Unity

Josep Sánchez Llibre, president of Foment del Treball, Catalonia’s largest business group, shared the underlying concerns but expressed hope that economic damage could be contained. He voiced preoccupation with geopolitical tension, yet called for a focus on maintaining stable commercial relationships.

Sánchez Llibre emphasised that trade policy, an exclusive competence of the European Union, necessitates projecting stability. He added, “It is important to give a message of confidence to the European institutions,” trusting the conflict would not ultimately harm trade relations. Although the EU has an established trade framework with the Gulf region, significant military conflict could test its resilience.

Locally, the crisis already shows tangible effects; reports indicate that fuel prices in Barcelona have begun to soar as markets react to the instability. This follows a period of heightened international anxiety, which saw some Spanish nationals evacuated from the region amid protests in Barcelona.

Government and Unions Respond

Responding to these urgent concerns, the Catalan government has agreed to form a permanent working group with social and economic agents. This body will continuously monitor the situation and determine appropriate measures to mitigate the economic impact on Catalan businesses and workers.

Trade union representatives at the meeting echoed the call for protection. Belén López, general secretary of CCOO de Catalunya, advocated for a robust “social shield” for workers. She also criticised organisations that “say our country is a fiscal hell and then are the first to demand aid.”

Meanwhile, Camil Ros, general secretary of UGT de Catalunya, offered a cautious comparison, suggesting current economic risks are not “as potentially serious” as those from the war in Ukraine, according to betevé.

Ultimately, all parties agreed that the conflict’s duration and intensity will determine the severity of economic repercussions for Catalonia. Establishing the working group is a crucial first step in preparing the region’s economy for the uncertainty ahead.