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Gipuzkoa‘s Economic Future: Navigating Uncertainty and Embracing Opportunity

Is Gipuzkoa, a region known for its robust industrial fabric, poised too not just weather economic storms but thrive in an era of global uncertainty? uni Andueza Iraeta, the newly appointed head of the Department of Economic Promotion of the Diputación de gipuzkoa, certainly believes so, painting a picture of resilience and strategic adaptation.

A Glass Half Full: Optimism Amidst Global Headwinds

While acknowledging the challenges faced by key markets like Germany and France, andueza Iraeta emphasizes the growing industrial occupation and sales figures within Gipuzkoa. This perspective reflects a proactive approach, focusing on strengths and opportunities rather than succumbing to recessionary fears. It’s a sentiment that resonates with many American businesses who, despite economic anxieties, are actively seeking growth and innovation.

Did you know? Gipuzkoa’s industrial sector is more significant than the average in Spain, making it both more dependent on external demand and perhaps more competitive.

The specter of ERTEs: Preparedness is Key

The possibility of temporary workforce adjustments (ERTEs) looms, a concern familiar to businesses worldwide. Andueza Iraeta doesn’t dismiss this risk, emphasizing the volatile economic scenario and the need for preparedness.The Diputación is committed to having a “battery of aid” ready to support companies should the need arise. This proactive stance mirrors the strategies employed by many US states, which offer various incentives and support programs to help businesses navigate economic downturns.

Balenciaga Shipyards: A Race Against Time

The search for investors for Balenciaga shipyards is in its final stretch, with two proposals on the table. Andueza Iraeta highlights the intense coordination with the Basque government and the Diputación’s participation in the monitoring commission. The situation is likened to a crucial game, potentially decided in the “90th minute,” underscoring the urgency and high stakes involved. This scenario is reminiscent of the challenges faced by American shipbuilding industries, which frequently enough require significant investment and strategic partnerships to remain competitive.

Automotive transformation: Adapting to a New Mobility Paradigm

The automotive sector is undergoing a profound transformation, driven by the shift to electric and hydrogen engines and the emergence of new mobility models.While some activities, particularly those focused on combustion engine components, are facing challenges, others are adapting and finding new opportunities. The market is evolving, with some areas shrinking and new possibilities emerging. This mirrors the situation in the US automotive industry, where companies are investing heavily in electric vehicle technology and exploring new business models.

The China Factor: A Global Automotive Shift

Andueza Iraeta notes that some areas of the automotive sector are being reduced, citing China’s growing dominance in car manufacturing. This highlights the increasing global competition and the need for companies to adapt to changing market dynamics. American automotive companies are keenly aware of this competition and are actively seeking ways to innovate and maintain their market share.

The Strength of external Demand: A Double-edged Sword

Gipuzkoa’s strong industrial fabric and exposure to external demand are seen as a strength, making the region more competitive. The key is the ability of companies to reinvent themselves and open new markets. The example of the United States becoming the third-largest export market for Gipuzkoa demonstrates this adaptability. This resonates with the experiences of many American companies, which rely on international trade to drive growth and innovation.

Expert Tip: Diversifying export markets is crucial for mitigating risk and ensuring long-term economic stability.

Mexico: A Key Market and Platform

Mexico plays a crucial role as both a market in itself and a platform for accessing the united States. Many companies view their presence in Mexico as a “lifeguard,” highlighting its strategic importance. The Diputación is organizing a commercial mission to Mexico, underscoring its commitment to fostering business relationships in the region. This reflects the close economic ties between the United States and Mexico, with many American companies having significant operations and investments in the country.

EPSVs and the Production Economy: A Symbiotic Relationship

The Basque government has encouraged EPSVs (voluntary social welfare entities) to become more involved in the production economy. While Andueza Iraeta acknowledges that it’s not their place to dictate investment strategies, they emphasize the connection between the quality of life and the strength of the industrial fabric. Strengthening the industry indirectly benefits EPSVs by providing a solid foundation for their investments. This concept aligns with the principles of socially responsible investing, where investors consider the broader impact of their decisions on society and the economy.

Wages and Quality Employment: Beyond the Minimum Wage

Andueza Iraeta acknowledges that living on 1,200 euros a month in Gipuzkoa is difficult. However, they argue that the key is not simply increasing the minimum wage but generating quality employment in technological and innovative sectors that can pay better wages. This approach focuses on creating enduring economic growth and improving the overall standard of living. This perspective is relevant to the ongoing debate in the United states about minimum wage laws and the need to create high-paying jobs in emerging industries.

The American Perspective on Minimum Wage

In the United States, the debate over minimum wage often centers on whether it’s a viable solution to poverty or if it hinders job creation. Many economists argue that focusing on skills training and education is a more effective way to improve long-term earning potential.

Absenteeism: A Multifaceted Challenge

Absenteeism is a significant concern in Gipuzkoa, with one of the highest rates in Europe. Andueza Iraeta emphasizes that there is no single cause, citing factors such as evolving values, the relationship with work, and organizational culture. The Diputación is launching initiatives to work with companies to address this issue. This is a challenge faced by many American businesses as well, with companies exploring various strategies to improve employee engagement and reduce absenteeism.

Reader Poll: What do you think is the biggest driver of absenteeism in the modern workplace?

• Burnout
• Lack of engagement
• Poor work-life balance
• Other

Defense Sector Opportunities: A Strategic Positioning

Europe is investing heavily in the defense sector, and Andueza Iraeta believes that Gipuzkoa should position itself to take advantage of thes opportunities. Many SMEs already work in sectors that have applications in defense, such as machine tools, aeronautics, and IT security. The focus is not just on traditional military equipment but also on areas like computer security, where Gipuzkoa has a strong industrial position. This reflects the growing importance of cybersecurity in the modern world and the potential for companies to leverage their expertise in this area to serve the defense sector. This is also relevant to the US, where the defense industry is a major driver of innovation and economic growth.

TAV: Infrastructure and Connectivity

The Diputación has always supported the Ezkio-Itsaso option for the high-speed train (TAV) project, believing it to be more competitive and direct. Andueza Iraeta emphasizes that any infrastructure that improves connectivity enhances the competitiveness of the economic fabric. The key is to ensure that the project is completed and contributes to the development of the territory. This aligns with the broader understanding that infrastructure investments are crucial for economic growth and development, a concept that resonates with infrastructure initiatives across the united States.

Illunbe Biotechnological Pole: A Hub of Innovation

While declining to reveal specific companies that will be installed in the Illunbe biotechnological pole, Andueza Iraeta hints at “very powerful things” happening in Gipuzkoa in the biotechnological field. They highlight therapies like Car-T as a “real revolution” and emphasize that the territory is already a reference point. This reflects the growing importance of biotechnology as a driver of innovation and economic growth, with many regions around the world seeking to establish themselves as hubs for this industry.The United States is a leader in biotechnology, with numerous companies and research institutions driving advancements in this field.

Quantum Pole: A Leap into the Future

The quantum pole, with the arrival of supercomputing and IBM jewels like Multiverse Computing, is another strategic project for Gipuzkoa. Andueza Iraeta highlights the importance of Multiverse Computing, a company that originated from pure research in Donostia, as an example of how scientific knowledge can become a disruptive company. It is indeed also seen as a key element in Gipuzkoa’s quantum strategy, within the broader Euskadi quantum roadmap, and will serve as a “leverage of the economy tractor.” This reflects the growing interest in quantum computing and its potential to revolutionize various industries,from finance to healthcare. The United States is also investing heavily in quantum computing research and development, recognizing its potential to transform the economy and maintain its technological leadership.

the Quantum Race: A Global Competition

The development of quantum computing is a global race, with countries around the world vying to be at the forefront of this technology. The potential applications of quantum computing are vast, and the country that masters this technology will have a significant competitive advantage.

Gipuzkoa’s Economic Resilience: An expert’s Perspective on Navigating Global Uncertainty

Keywords: Gipuzkoa, economic progress, industrial sector, global economy, innovation, technology, Spain, Basque Country

Is Gipuzkoa, a region in Spain’s Basque Country, truly prepared to thrive amidst global economic headwinds? We sat down with Dr. Elena Ramirez, a leading economist specializing in regional economic development, to unpack the recent statements from Uni Andueza Iraeta, the head of the Department of Economic promotion of the Diputación de Gipuzkoa, and gain deeper insights into the region’s economic future.

Time.news: Dr. Ramirez, thanks for joining us. Andueza Iraeta expresses optimism about Gipuzkoa’s economic prospects despite challenges in major markets like Germany and France. Is this optimism justified?

Dr. Ramirez: It’s a cautiously optimistic outlook, and rightfully so.Gipuzkoa possesses a robust industrial base, more meaningful than the Spanish average. This offers a competitive edge but also makes the region more susceptible to fluctuations in global demand. Andueza Iraeta’s focus on growing industrial occupation and sales figures is a positive sign, indicating resilience and proactive adaptation.The key takeaway for businesses, whether in Gipuzkoa or elsewhere, is to focus on their strengths and identify new opportunities, even amidst broader economic anxieties.

Time.news: The potential for temporary workforce adjustments (ERTEs) was also discussed. What does this signal, and how should businesses prepare?

Dr. Ramirez: The acknowledgment of potential ERTEs reflects a realistic understanding of the current volatile economic scenario. Preparedness is paramount.The Diputación’s commitment to having a “battery of aid” available is a commendable proactive measure. Businesses should, thus, assess their vulnerability, explore potential government support programs, and develop contingency plans to manage workforce adjustments if necesary. This approach mirrors prosperous strategies implemented in the US and other developed economies.

Time.news: The article highlights the situation with Balenciaga shipyards and the change of the automotive sector. What are the broader implications for Gipuzkoa’s economy?

Dr. Ramirez: These situations exemplify the need for adaptation and strategic investment. The Balenciaga shipyard situation underscores the importance of attracting investors and securing strategic partnerships, reminiscent of challenges faced by the US shipbuilding industry. The automotive sector’s transformation,driven by electrification and the rise of China,presents both challenges and opportunities. Companies must invest in innovation, explore new mobility models, and diversify their markets to remain competitive.

Time.news: Speaking of markets, Mexico is identified as a vital market and a platform for accessing the United States. why is this significant?

Dr. Ramirez: Mexico’s strategic importance cannot be overstated. It’s not only a growing market in its own right but also a crucial stepping stone for companies looking to expand into the US market. The Diputación’s commercial mission to Mexico highlights the region’s commitment to fostering these business relationships.For businesses looking to expand internationally, a presence in mexico can provide a significant competitive advantage

Time.news: The article also touches on internal matters: wages and absenteeism. How are these issues impacting Gipuzkoa,and what solutions are being proposed?

Dr. Ramirez: Andueza Iraeta’s point about addressing wage issues not just through minimum wage increases but by creating quality, high-paying jobs in technological and innovative sectors is crucial. This focuses on sustainable economic growth and improving the overall standard of living. Absenteeism, with its high rates in Gipuzkoa, requires a multifaceted approach. Addressing underlying issues such as burnout, lack of engagement, and poor work-life balance is essential. Companies need to invest in employee well-being and create a positive organizational culture to improve attendance and productivity.

Time.news: the focus on the defense sector, the TAV (high-speed train), the Illunbe biotechnological pole, and the quantum pole are mentioned.What is the key takeaway regarding these projects?

Dr. Ramirez: These initiatives signify Gipuzkoa’s commitment to innovation and future-proofing its economy.Positioning itself in the defense sector, notably in areas like cybersecurity, reflects a strategic move to capitalize on growing European investments. Infrastructure projects like the TAV are vital for improving connectivity and enhancing the region’s competitiveness. The investments in biotechnology and quantum computing,exemplified by the Illunbe and quantum poles,position Gipuzkoa at the forefront of emerging technologies. dr. Elena Ramírez pointed out the importance of Multiverse Computing, a company that originated from pure research. The key is to continue fostering innovation, attracting talent, and building ecosystems that support the growth of these sectors. It highlights a holistic vision to strengthen the economy of the region.

Time.news: Dr. Ramirez, thank you for your invaluable insights.

Dr. Ramirez: My pleasure. It’s an exciting time for Gipuzkoa, and with strategic planning and proactive adaptation, the region can undoubtedly navigate uncertainty and embrace the opportunities ahead.