Catalonia Mobilizes €1.5 Billion to Counteract US Tariffs
The Catalan government outlines a financial plan aimed at supporting key export sectors affected by US tariff increases.
The Catalan government has announced a mobilization of €1.5 billion in aid and loans to mitigate the impact of recently imposed tariffs by the United States.
This economic plan was presented by the Catalan president, Salvador Illa, to social agents and is designed to defend the region's business fabric against the backdrop of escalating trade tensions.
The financial initiative comprises two significant components: €300 million allocated for direct aid through Catalonia's ordinary budget, and €900 million in loans and credits facilitated via the Catalan Finance Institute (Institut Català de Finances, ICF).
Additionally, provisions for communication campaigns are included in this strategy.
The introduction of a 20% tariff on certain products by former US President Donald Trump is projected to affect Catalonian exports to the United States, which total €4.35 billion.
This measure is expected to impact over 3,000 Catalan companies that export goods to the US market.
The focus of the financial aid is directed towards sectors most impacted by these tariffs, including chemicals and pharmaceuticals, machinery, the agri-food industry, and metallic products.
A total of 3,161 Catalan companies are involved in exporting these products to the United States.
The defined structure of the €300 million aid package encompasses three types of support: first, non-repayable grants specifically aimed at the agri-food sector; second, international promotion aid; and third, incentives for enhancing the international presence of Catalan companies.
The government plans to leverage the ICF to implement various financial instruments tailored to affected companies, including guarantees, working capital loans, investment credits, and interest rate subsidies of up to 1.5%.
An additional €150 million will be allocated to investment funds and capitalization efforts through the ICF and AVANÇSA, the public business holding of the Generalitat.
Furthermore, the plan includes €130 million dedicated to advisory services aimed at boosting the internationalization and market diversification of Catalan firms.
Specific initiatives will be developed to help businesses adapt to the new commercial realities in the United States, alongside a reorientation of the foreign offices operated by Acció to tackle trade barriers.
Public-private partnerships will also be established to guide companies in their export endeavors.
In addition, €20 million will be invested in communication campaigns to enhance the visibility of Catalan products in key markets.
On the announcement day, President Illa convened with leading trade unions and business associations to discuss the proposed measures in response to the tariff crisis, with further briefings scheduled for parliamentary groups by the ministers of Economy and Business.
This economic plan was presented by the Catalan president, Salvador Illa, to social agents and is designed to defend the region's business fabric against the backdrop of escalating trade tensions.
The financial initiative comprises two significant components: €300 million allocated for direct aid through Catalonia's ordinary budget, and €900 million in loans and credits facilitated via the Catalan Finance Institute (Institut Català de Finances, ICF).
Additionally, provisions for communication campaigns are included in this strategy.
The introduction of a 20% tariff on certain products by former US President Donald Trump is projected to affect Catalonian exports to the United States, which total €4.35 billion.
This measure is expected to impact over 3,000 Catalan companies that export goods to the US market.
The focus of the financial aid is directed towards sectors most impacted by these tariffs, including chemicals and pharmaceuticals, machinery, the agri-food industry, and metallic products.
A total of 3,161 Catalan companies are involved in exporting these products to the United States.
The defined structure of the €300 million aid package encompasses three types of support: first, non-repayable grants specifically aimed at the agri-food sector; second, international promotion aid; and third, incentives for enhancing the international presence of Catalan companies.
The government plans to leverage the ICF to implement various financial instruments tailored to affected companies, including guarantees, working capital loans, investment credits, and interest rate subsidies of up to 1.5%.
An additional €150 million will be allocated to investment funds and capitalization efforts through the ICF and AVANÇSA, the public business holding of the Generalitat.
Furthermore, the plan includes €130 million dedicated to advisory services aimed at boosting the internationalization and market diversification of Catalan firms.
Specific initiatives will be developed to help businesses adapt to the new commercial realities in the United States, alongside a reorientation of the foreign offices operated by Acció to tackle trade barriers.
Public-private partnerships will also be established to guide companies in their export endeavors.
In addition, €20 million will be invested in communication campaigns to enhance the visibility of Catalan products in key markets.
On the announcement day, President Illa convened with leading trade unions and business associations to discuss the proposed measures in response to the tariff crisis, with further briefings scheduled for parliamentary groups by the ministers of Economy and Business.
Translation:
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