As Brexit looms closer, there is still a great deal of uncertainty as to what it will mean, for both Britain and the rest of Europe. To protect businesses in the region, the Murcia government are coming up with new measures to help enterprises to survive and to keep the economic effect to a minimum in the Murcia region.
One of the significant concerns is that Brexit will mean that export prices for products to the UK will become less competitive. With it being harder to export products to the UK, business turnover may suffer as a result. To reduce the risk, the Murcia government is assessing their plans for different scenarios where export prices rise between five and 60%.
The government of Murcia are preparing well for every eventuality that Brexit may bring, with their own regional 'Brexit Committee'. For example, from next April, there will be a 'Brexit Desk'. This is specially designed for small to medium-sized enterprises which export to the UK to seek help and advice for any problems they may face.
As well as the 'Brexit Desk' the government of Murcia are also setting up a scheme of 'Brexit Cheques'. 'Brexit Cheques' will be written out to companies who require consultancy services to help redefine their export strategy in the wake of Brexit.
It is believed that many businesses in Murcia may suffer as a result of Brexit, especially as exports are high in a range of sectors. These export sectors include; fruit and vegetables, farming and machinery, furniture, footwear, pharmaceuticals and engine generators. To assist these sectors of the economy, the regional government will issue subsidies of up to €10,000. They hope the grants will be used for consultants who can attract sales and customers in other markets.
Currently, Brexit has not had an adverse effect on exports from Murcia. In fact, sales and income from British buyers rose last year. However, Murcia is ready for the worst-case scenario, which they envision to be product costs rising 40-60% to buyers in Britain. Other concerns will be the competition from other exporting nations increasing, which could cause Murcia export figures to plummet.
Image courtesy of Javier Celdrán