Medium shot of Josep Sánchez Llibre speaking from a Foment de Treball lectern raising his two index fingers
POLITICS

End of Illa-Business Leaders Honeymoon: Foment del Treball Criticizes the Govern

Foment Talks of 'Business Strangulation,' 'Confiscatory Taxation,' and Lack of 'Dialogue'

No one is unaware that President Illa's Govern was blessed by Catalan entrepreneurs. To a certain extent, it was normal, even predictable. After the pro-separatism decade, entrepreneurs clearly saw that the political disorder was not typical of Catalonia.

The starting point of the Generalitat-entrepreneurs conflict was Isidre Fainé's call to action when he took the Caixa universe out of Catalonia. From here, Foment del Treball, as well as other business associations, circulated the same discourse. That is, companies would return when they perceived certainty and normality in the tenant of Palau.

For this reason, the collapse of the pro-separatism movement, which has taken the form of Salvador Illa, was well received by Foment; let's remember that, until recently, Junts was asking to fine companies that did not return to Catalonia. In fact, shortly after Illa's arrival, the La Caixa Foundation returned its headquarters to Barcelona. Similarly, during these first months of Govern, there have been no shortage of kind words between Illa and the entrepreneurs.

Man with glasses and a dark suit, sitting and thoughtful, with his hand on his chin.
The President of the Generalitat, Salvador Illa | Europa Press

However, symbolism runs out quickly, especially with a party like PSC, characterized by strong ideological parsimony. Indeed, aside from the kind words, Catalonia's economic-business reality is what it is. The "tax hell" (Foment's words) continues, interventionism gains strength (housing, for example), and the Catalan bureaucracy remains as slow as ever.

This is what Sánchez Llibre recently denounced through a Foment statement. The Catalan business association complains about the Govern's "strong interventionist component" and a lack of "dialogue." Foment talks about "restoring respect for essential rights such as property rights and business rights."

More specifically, Foment points to several recent measures by the Govern. Among these, the tax increase, the attack on the tourism industry, and real estate interventionism stand out. The business lobby doesn't hold back on strong words and speaks of "confiscatory taxes" and "premeditated suffocation of the business community."

Businesspeople Criticize Interventionism | Europa Press

Jesuitism Marks PSC

This situation is normal considering that Illa has not hesitated to play multiple sides when necessary. Before being sworn in as president, and before starting to govern, Illa frequented all business forums. Parallel to this, Illa offered grand headlines about Catalonia's economic takeoff.

However, when it came time to issue legislation, Illa 'de facto' adopted the economic policy of Comuns, ERC, and, curiously, also of the CUP. From this arises, for example, real estate interventionism, which has further reduced market supply. Symbolically, it is worth noting that Barcelona has the most expensive room in Spain at 661 euros.

This is another example that the current legislature has a rather limited political and economic trajectory, starting with the fact that PSC doesn't have a majority to carry out the enormous reforms it has proposed. On the contrary, this is a legislature of readjustment of all pieces after the end of the pro-separatism decade. The economic-business piece already sees that, in the Govern, it will find an interlocutor very determined by the interests of the moment.

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