Despite the challenging economic landscape, the province of Cadiz has achieved a significant milestone by surpassing 67,000 self-employed individuals, with over 700 new entrepreneurs joining in the last year. This growth has been highlighted by the leadership of the National Federation of Associations of Self-Employed Workers (ATA), who consider it a very positive and relevant development.
“"The drive that many young people are showing in entrepreneurial initiatives and the measures promoted by the Junta de Andalucía to facilitate and consolidate self-employment are key to this growth."
Nevertheless, self-employed workers in Cadiz face considerable challenges, especially after recent storms that have affected the province. The ATA leadership has emphasized the need for aid from the Junta de Andalucía and the central Government to arrive quickly to mitigate the effects on sectors such as the primary industry. Added to this are rising costs stemming from international conflicts, which impact both professionals and consumers.
The latest reports from ATA confirm a net increase in self-employed individuals in Cadiz during the last quarter, a trend that contrasts with the situation in other Andalusian provinces. This strong performance is attributed to the diversification of the local productive fabric and the region's ingrained entrepreneurial spirit, with new projects emerging in areas such as technology, sustainable tourism, and handicrafts.
In an effort to ease the economic burden, the Government plans to approve a reduction in VAT on gas, fuel, and electricity from 21% to 10%, a measure that had been requested by ATA. The federation's leadership has indicated that this decision could "slightly alleviate the burden" on the collective, stressing that their request focused on tax reductions rather than subsidies.
Geopolitical instability also raises concerns about potential supply shortages from the Middle East and Asia. The ATA leadership has warned about the impact on the agricultural sector due to rising fertilizer and fuel prices, citing as an example the 40% increase in asphalt bitumen, which affects road maintenance companies.
“"The province of Cadiz continues to have a huge problem with communications and transport."
Another significant obstacle for the economy of Cadiz and Andalusia is the inadequacy of communications. The ATA leadership has described the railway system in Spain as "chaotic," creating uncertainty in key sectors such as tourism. Concerns have been raised about Malaga's lack of rail connection with Madrid, and an increase in air frequencies from Jerez airport has been demanded to improve the province's connectivity.
At the European level, the European Commission has sued Spain before the Court of Justice of the European Union for non-compliance with self-employed regulations, following a complaint filed by ATA in November. The federation's leadership has explained that Spain is the only country in the European Union that lacks the "franchised VAT" system, which would exempt self-employed individuals earning less than 85,000 euros from declaring VAT quarterly, thereby reducing bureaucratic burden. The Government of the Canary Islands has been cited as an example, having used its fiscal autonomy to reduce its equivalent tax for self-employed individuals with incomes below 50,000 euros.
