Valladolid, January 26, 2024 — Businesses in Castilla y León are calling for a major overhaul of regulations and taxes to boost the region’s economic growth. The CEOE Castilla y León is preparing a list of demands for the incoming regional government, hoping to unlock investment and retain skilled workers.
The business group aims to ensure Castilla y León maintains its economic momentum, increases employment, and strengthens its infrastructure.
- The CEOE is pushing for reduced administrative burdens and deregulation.
- Eliminating the wealth tax is a key demand, seen as a disincentive to investment.
- Addressing energy infrastructure bottlenecks is crucial for attracting new investment.
- The group emphasizes the need for training programs to prevent a “brain drain” of skilled professionals.
Santiago Aparicio, president of CEOE Castilla y León, argues that excessive regulation is “harmful” to businesses, particularly small and medium-sized enterprises (SMEs) – the backbone of the Spanish economy. He contends that companies are forced to dedicate too much time and resources to navigating “absurd” rules originating from Europe, the national government, and the regional administration, ultimately hindering competitiveness and productivity.
“The economy of Castilla y León needs to maintain its growth,” Aparicio stated, emphasizing the need for increased hiring and infrastructure improvements. The organization plans to present a detailed document outlining these demands to the new regional executive following the upcoming elections on March 15.
Energy Infrastructure Bottlenecks
Aparicio highlighted a “paradoxical” situation in Castilla y León: despite being an energy-exporting region, it suffers from “deficits” in its ability to evacuate that energy. This lack of infrastructure, he says, discourages new investment. The CEOE is advocating for consideration of this issue when allocating territorial funds, ensuring that the energy produced within the region is prioritized for local investment.
Without addressing these infrastructure issues, Aparicio warned, businesses “will have a hard time.” He reiterated the importance of abolishing the wealth tax, calling it a “barbarity” that stifles investment and economic growth.
The Challenge of Retaining Talent
The CEOE also expressed concern over a skills gap and the outflow of qualified professionals from Castilla y León. Aparicio stressed the need for active training policies to attract and retain talent, emphasizing that companies must provide opportunities for career advancement to incentivize employees to stay and contribute to the region’s research and development efforts.
The organization is committed to fostering social dialogue between businesses and other stakeholders to address these challenges and promote a thriving economic environment in Castilla y León.
