Isha Sesay
THE ERTE schemes are set to be extended until the end of the year in the Balearic Islands, it has been revealed.
The groundbreaking announcement was made on Monday morning by Minister of Tourism Iago Negueruela.
Speaking at a press conference alongside Iberostar President Miquel Fluxa, Negueruela explained that crisis-talks had been held between leading tourism bosses and the Balearic President Francina Armengol.
The emergency meeting was called to discuss ways to support companies concerned about recovering in a ‘new normality’ after Spain’s state of alarm officially came to an end on Sunday.
Remarking on the ‘positive outcome’ of the talks, Negueruela stated that Armengol agreed to extend the Temporary Employment Regulation Files until the end of 2020.
Although a formal request for its extension will now have to be signed off by Pedro Sanchez’s central government, Negueruela expressed his optimism for its approval.
“In the next few hours we expect a positive response to our request,” said the Minister.
Just some days before, the Confederation of Business Associations in the Balearic Islands (CAEB) made a stark prediction that the region would enter a recession if ERTEs were not extended.
Its President, Carmen Planas, said the financial programme must stay in place until Balearic businesses recover fully.
“ERTEs are a necessary tool to ensure that companies do not suffocate and to defend employment,” said Planas.
She also stated that a ‘high number of businesses were on the brink of collapse’ which would lead to the ‘destruction of both the productive and employment fabric of the islands.’
It comes almost a week after the Spanish Government said it would extend its ERTE schemes until September 30.
The financial programmes, which allow employers to lay off or temporarily suspend workers during crises, were set to expire on June 30.
However, bosses from Spanish multinationals, including Pablo Isla from Inditex and Mercadona founder Juan Roig, piled pressure on the Government to secure its extension.
