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Thursday, Apr 03, 2025

Election Tensions Rise in Spanish Business Association Amidst Allegations

Divisions deepen as Cepyme prepares for leadership election amidst accusations and political interference.
As the election for the leadership of Cepyme, the Spanish Confederation of Small and Medium Enterprises, approaches with just six weeks to go, tensions within the organization have escalated significantly.

Divided between supporters of the current president Gerardo Cuerva and opposing candidate Ángela de Miguel, the atmosphere is fraught with allegations and dissatisfaction among many in the business community who are calling for a ceasefire.

Concerns are growing about the negative impact this conflict may have on the public perception of the business sector, especially at a time when unity is critical to address challenges faced by Spanish companies both domestically and in a geopolitically uncertain international context.

High-ranking officials within the CEOE, the Spanish Confederation of Employers’ Organizations, have expressed alarm over the implications of ongoing claims being aired, referring to them as detrimental to the organization’s image.

Cuerva’s camp, represented by vice president José Manuel de Riva, has made serious accusations against various members of the business organization, including Lorenzo Amor, president of the self-employed association ATA, calling for investigations due to alleged conflicts of interest, as well as directing accusations at De Miguel regarding alleged preferential treatment.

Recent reports have surfaced about a complaint of workplace harassment within the CEOE, contributing further to the scrutiny faced by the business confederation.

The CEOE issued an atypical communication earlier this week, firmly denying any knowledge of such allegations being submitted to their internal commission.

The statement criticized those disseminating these accusations as engaging in defamatory practices aimed at introducing confusion during the electoral process.

The organization indicated it reserves the right to pursue legal actions as deemed fitting, with both CEOE legal teams and affected members working to address the fallout of these allegations.

Supporters of Cuerva have challenged the validity of the CEOE's denial, suggesting that the mere acknowledgement of no formal complaints reaching them represents an intrusion by Antonio Garamendi into a confidential investigative process.

Garamendi’s team maintains that these allegations have not followed the formal complaint route and has refrained from engaging with the ongoing discord.

However, sources reveal that the CEOE has activated its legal mechanisms to clarify the matters at hand and to potentially restore the reputation of those implicated.

In an environment where many businessmen have remained publicly neutral on the candidacies, a sense of discomfort and sadness has emerged, with comments expressing disappointment over the escalating nature of the conflict.

There is a prevailing sentiment that while being combative in an election process is expected, attacking opponents with disclosed dossiers is viewed unfavorably by some members of the executive committee.

The involvement of political figures has also raised eyebrows, notably following confirmation of support for Cuerva from Isabel Díaz Ayuso, President of the Community of Madrid, during the launch of his candidacy on 5 May. This has prompted criticism from peers who believe that political interference in business association elections is inappropriate.

Garamendi himself voiced similar concerns in a media interview, asserting that politics should not play a role in business electoral matters, while also acknowledging having praised the economic policies of the Madrid government.

In terms of support and vote distribution, several major business associations, including Foment del Treball from Catalonia, CEV from Valencia, and ATA, have publicly backed De Miguel.

Cuerva has yet to formally announce his candidacy, aiming for the official launch at the aforementioned event on May 5. Candidates have until ten days prior to the election, scheduled for May 20, to submit their nominations along with an executive committee list.

Despite some endorsements for De Miguel, the confidentiality of the ballot process could still favor Cuerva, who is particularly focused on securing votes from provincial business members, where his message against perceived anti-business government policies resonates more strongly.
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