La Palma Cabildo Addresses Economic Impact of Middle East Conflict
The island institution will establish a monitoring observatory to mitigate rising costs in the shopping basket and support productive sectors.
By Airam Cabrera Suárez
••2 min read
IA
Generic image of a hand with a calculator, symbolizing economic analysis and cost management.
The Cabildo de La Palma, under the presidency of Sergio Rodríguez, has held a meeting with the island's economic representatives to analyze the consequences of instability in the Middle East on the local economy.
The meeting, held this Monday, addressed the risks derived from the increase in crude oil prices and maritime freight, factors that accentuate the “double insularity” affecting La Palma. Also present at the meeting were the Minister of Tourism, Raquel Rebollo; the Minister of Employment, Susa Armas; the Minister of Finance, Fernando González; the Head of Transport, Darwin Rodríguez; and the Minister of Economic Promotion, Miriam Perestelo.
Sergio Rodríguez expressed his concern about the rising cost of agricultural inputs and cereals, which are essential for the livestock sector, as well as the increased energy bill borne by the island's small and medium-sized enterprises. He emphasized the need to protect La Palma's economic recovery after the volcanic eruption.
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"La Palma is not an island isolated from global reality. The conflict in the Middle East is already straining supply chains, and we cannot allow this scenario to hinder the recovery that has been so difficult to initiate after the volcano."
In response, the Cabildo has committed to creating a monitoring observatory to prevent cost increases from disproportionately affecting the shopping basket. Additionally, contingency plans will be evaluated to offset the rising cost of feed and fertilizers if the unstable situation persists.
In the tourism sector, the potential impact on air connectivity was analyzed. Although February data showed an 11.2% growth in passenger numbers, the volatility of aviation fuel (kerosene) prices creates uncertainty for the summer season. Rodríguez stated that La Palma is perceived as a safe destination, but it is crucial to be prepared for possible adjustments in flight frequencies.
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"It is a time for institutional unity. The Cabildo will deploy all its resources to mitigate the impact of this external crisis and ensure that La Palma's productive sectors have the necessary support to withstand this new international challenge."
The island institution agreed to hold these meetings monthly as long as the phase of maximum tension in the conflict persists, with the aim of adapting public policies to the evolving events.