BBVA’s hostile takeover of Banc Sabadell has monopolized the week’s economic information, although its significance rivals that of the end of the emergency phase due to the drought, decided last Wednesday by the Government of the Generalitat for Barcelona and Girona. We are still in the exceptional phase, but when the reservoirs reach 25% of their capacity, the de-escalation can begin. Good news for the tourism sector, which was facing a very complicated high season. Being able to fill the pools brings peace of mind to a crucial economic sector that had mobilized intensely against the imposed water restrictions. The rains of recent weeks give oxygen and calm spirits, but we must not let our guard down. The problem is still there.
It is still there and is here to stay, as studies on the effects of climate change point out. A few days before elections that could change the political landscape, the Government seemed to have it clear, because it announced that, despite the end of the emergency, it was going ahead with plans to install 12 portable desalination plants in Roses and Empuriabrava and place a floating one in the Barcelona’s port. All of them should be up and running between June and October to be able to use them if necessary. Likewise, two large desalination plants are planned, in Blanes and Cubelles, which the Government must put out to tender and which are expected to come into operation in 2028 and 2029.
It will be enough? Will it arrive on time? For the moment, these unknowns have served to ignite the cross-party debate during the Catalan election campaign, with accusations between some of them of not having reacted sooner and not having done enough.
Hoteliers are also not entirely confident that the public initiative will get them out of the fire. Entrepreneurs in the Lloret de Mar sector will continue with their investment of 1.5 million euros to launch a portable desalination plant that will allow them to ensure the filling of the pools. The new infrastructure will be installed at the beginning of June at one end of the promenade and will be put into operation if the swamps are again in a critical situation. The Government does not foresee it, at least throughout this year, but as Enric Dotras, president of the Lloret de Mar Hospitality Gremi, has pointed out, “we do not know when we can return to an emergency situation.”
Tourism, in any case, does not currently appear to be the sector most affected by drought and climate change. Agriculture and livestock are already suffering its impact, which has contributed to skyrocketing the price of some products such as olive oil. With the end of the emergency phase in Barcelona and Girona, they will now benefit from more moderate water restrictions, but in many cases the damage is already irreparable. This is the case of the wine sector, where a large company like Freixenet, leader in the cava market, has been forced to apply a temporary employment regulation file (ERTE) for up to 615 workers starting next week. The historic firm of the Ferrer family, acquired 50% six years ago by the German group Henkell, has also announced that it will have to produce alternative sparkling wines to cava in order to meet the demand of some of its main international markets.
There is not enough production of grapes from the Cava designation of origin to supply all the demand, so the giant of Sant Sadurní d’Anoia, with a turnover that exceeds 1.1 billion euros, has made a major decision: look for another type of product for its main markets abroad, Germany, Switzerland and Austria. The drought has been especially hard in the Penedès, and the harvest in the DO Cava for Freixenet has been reduced by 45%, so the company has admitted that it is now impossible for them to meet the demand in those markets. The measure, in any case, will not affect Spain, where Freixenet cavas will continue to be marketed without changes, nor the rest of the company’s international markets. The new product, Freixenet Premium Sparkling Wine-Cuvée from Spain, will be made in Sant Sadurní with Catalan and Spanish grapes outside the Cava DO and will be marketed from August.
Exceptional solutions for exceptional times. Or not so much.
