Merchants and restaurateurs in Pas de la Casa are grappling with a severe economic downturn. Consequently, they report revenue drops of up to 70 per cent following a major RN20 landslide. The road closure, which occurred over the weekend, has severed the primary connection between the Andorran town, Northern Catalonia, and the Occitania region.
This sudden disruption to cross-border traffic has prompted immediate concern from local business leaders and government officials alike. Meanwhile, fears persist that the blockage could last for an extended period.
Your browser does not support the video tag.Home » RN20 Landslide Causes 70% Revenue Drop in Pas de la Casa
RN20 Landslide Prompts Government Warning of Long-Term Closure
Gerard Pifarré, representing the sector on the Economic and Social Council of Pas de la Casa, has highlighted the gravity of the situation. His concerns were echoed by the Head of Government, Xavier Espot, who admitted that current projections are not optimistic.
Espot warned that the RN20 road closure could extend for several weeks or potentially months. This depends on the stability of the terrain. In response to the crisis, the government is currently analysing a suite of aid measures. These measures aim to mitigate the financial impact on local businesses.
Among the proposals under consideration are exemptions from the General Indirect Tax (IGI) and waivers for workers’ social security contributions. Additionally, the administration is looking at reintroducing ‘soft loans’. These low-interest financing instruments successfully supported businesses during the Covid-19 pandemic.
Simultaneously, the municipality of Encamp has indicated it may offer bonuses or reductions on local taxes. For example, business location and hygiene fees could be reduced to further ease the burden on affected establishments.
RN20 Landslide Triggers Calls for Transport Flexibility
Beyond direct financial aid, the business community has petitioned for logistical support. Therefore, employers are requesting free public transport for cross-border workers for the duration of the blockage. There are also calls for French customs officials to exercise greater flexibility at control points. This would facilitate the arrival of the few customers who can still access the area.
To manage the mobility crisis, transport authorities have reinforced alternative routes. For instance, train frequencies between Ax-les-Thermes (Acs) and L’Hospitalet-près-l’Andorre have been increased. Meanwhile, an expansion of bus lines and services aims to maintain connectivity.
The government expects to receive a detailed technical report from French authorities regarding the landslide‘s status on Monday. Following this assessment, a concrete proposal for aid packages is scheduled for presentation to business owners on Wednesday. Until then, uncertainty remains high in Pas de la Casa. The town must navigate the disruption during the critical winter season.
Apply to join our community of Entrepreneurs, Senior Executives and Founders at Bizcelona .