“We have already experienced this before, when the 2008 crisis was denied. We cannot make the same mistakes. Remember the consequences”, affirms the president of the Administrative Managers
The President of the Administrative Managers,
Fernando Jesus Santiago Ollero, has convened this Friday a breakfast with journalists to talk about the situation of small and medium-sized businesses, in a stark but real way. In his opinion, autumn is coming up hot and summer is going to be a deceptive oasis. «I am very clear that people need to rest, we have been very tense for many months and we must try to relax. But it is going to be a short period of false calm;
Autumn will come with price increasesgrowing interests, low returns, funds and aid that do not reach SMEs, supply problems…”
The President of the General Council pointed out during his speech that we have already experienced a similar situation, when for many months our leaders
they insisted on not accepting reality, it was forbidden to talk about crisis. At the moment, talking about the problems of SMEs means receiving strong criticism for sending messages that can scare the population.
«I don't quite understand why they insist on not calling things by their name. It is the only way to combat the crisis situation that we are suffering with the appropriate measures, ”adds Santiago.
highlighted the problems for ICOs to reach SMEs and, above all, in the successive periods set to extend deficiencies and amortization periods. The president of the gA affirms that it is not understood that new periods to extend terms continue to be established if it is not because there is strong pressure on the liquidity of SMEs. “It is not sustainable for banks to tell us that SMEs are not requesting the extensions with which new periods continue to be opened to extend the terms and when all the agents agree with the existence of serious liquidity problems that plague small businesses. .
someone is not telling the whole truthand I'm sure it's not the companies or the self-employed", confirms Santiago.
“ICOs have not been the solution for small and medium businesses. And now the Government insists on putting extensions of terms in the hands of the banks. 3 deadlines have been established in the latest code of good practices, due to the difficulties that financial entities are causing»
Regarding the labor market, Santiago asks for caution. The labor reform, the ERTE and its consequences, the rise in the SMI in the last two years,
are being valued very differently by the Government and by social agents. The drop in ERTE workers at the end of the Covid ERTE term, up to the current 21,000 workers, is offset by the
100,000 contract suspensions between March and April this year. The high percentage of public employment or the number of discontinuous permanent contracts and permanent part-time contracts are other indicators that still do not allow us to ensure that the labor reform has been a success. In Santiago's opinion, “let's wait until the end of the year to make a more objective assessment. In any case, what we perceive at street level is that
small businessmen are worried with the reform and that the increase in the SMI in the last two years has led to a strong growth in wages, as well as aborting new planned hiring ».
Fernando Santiago highlighted the difficulties of small businesses to recover the levels of income and profitability prior to the pandemic. To which must be added the over-indebtedness for many of them and the increase in costs, which generates the fall in profitability that was already reflected in the April barometer of the gA. In it, it was stated that the
70% SMEsand freelancers They obtain so far this year lower profitability than last year.
Small businesses are also suffering from the pressure of taxes and the lack of support in the form of subsidies. The president of the Administrative Managers does not hide his concern at the lack of measures to support businesses. “The best insurance for workers is that the companies in which they provide their services are
sanitized and, consequently, its continuity is underpinned. I do not doubt that it is necessary to cover the most disadvantaged, but I insist that it is preferable for the employer to pay than for the State to pay”, says Fernando Santiago. To this end, the President of the Administrative Managers requests that the distribution of European Funds be reconsidered so that they achieve the objectives that such aid should pursue.