The cooperative bank Cajamar has brought together more than 300 business and institutional representatives in Murcia to examine, alongside former Vice-President of the European Central Bank and former Minister for the Economy, Industry and Competitiveness, Luis de Guindos, how the new international landscape is shaping business activity, investment and competitiveness. Held at Finca Buenavista, the Murcia Cajamar Business Meeting offered the region’s productive fabric an expert perspective on developments in the global economy and provided practical insights to anticipate risks, guide decisions and identify growth opportunities in an environment marked by uncertainty and accelerating change.
During the event, one of Luis de Guindos’s first public appearances since completing his term as Vice-President of the European Central Bank on 31 May, he said that the Spanish economy’s capacity to respond is “remarkable: with little political intervention, it reacts extremely well”. He added that “the recovery from the crisis was thanks to business leaders, even under extremely difficult conditions, because they always respond impressively well”. In this context, he highlighted the strengths of the Spanish economy, placing particular emphasis on the financial sector, “which is sound, has the capacity to provide financing, and whose solvency, liquidity and resilience are beyond doubt”.
Cajamar’s Regional Director in Murcia, María Dolores Pagán, opened the meeting by highlighting Luis de Guindos’s informed perspective on a landscape that has been profoundly transformed in recent years. In her remarks, she identified three forces that are already reshaping the economy and business activity: the acceleration of technology and the rise of artificial intelligence, the climate and environmental emergency, and the emergence of new competitors.
Against this backdrop, Pagán argued that “Europe must respond with intelligence and determination: strengthening its strategic autonomy without turning away from openness; increasing its competitiveness and productivity; safeguarding essential supplies; and making the energy and digital transitions a source of progress”. She also underlined Cajamar’s commitment to the Region of Murcia and to a “dynamic and strongly export-oriented” productive fabric that competes in markets facing regulatory changes, cost fluctuations, new environmental requirements and increasingly intense international competition.
In his address on Cajamar Caja Rural and the Region of Murcia: a shared vision for sustainable development, BCC-Grupo Cajamar’s General Director of Sustainability and Agri-food Development, Roberto García Torrente, emphasised “the Region’s economic, demographic and business transformation: its population now exceeds 1.6 million and its international profile continues to grow”. He also recalled that “Cajamar Caja Rural opened its first branch in the Region of Murcia in 1989, and since then we have supported the economic growth and development of one of Spain’s most innovative, entrepreneurial and internationally focused autonomous communities”.
As an example of this transformation, García Torrente pointed to the development of regional agriculture, which is “increasingly integrated with industry, logistics, international markets and a network of technology-related ancillary companies with a strong innovative component”. Alongside the dynamism of the agri-food industry, he highlighted the growth of activities related to chemicals and pharmaceuticals, energy and refining, plastics and packaging, metalworking and the Cartagena industrial hub, as well as the importance of the services sector, the main source of economic activity and employment.
He also drew attention to the indicators in which the Region of Murcia remains below the national average, particularly per capita income, unemployment and early school leaving. He identified several strategic challenges: “protecting ecosystems of special interest, such as the Mar Menor; guaranteeing a high-quality water supply; modernising the railway network, with particular attention to the Mediterranean Corridor; connecting port and logistics areas; and making better use of the International Airport”. Addressing these challenges, he said, “will be decisive in strengthening regional competitiveness, attracting and retaining talent, driving business innovation and increasing regional productivity”.
The event also featured remarks by the Region of Murcia’s Regional Minister for the Environment, Mar Menor, Universities and Research, Juan María Vázquez, who introduced Luis de Guindos and highlighted his experience after 15 years in senior national and European economic positions.
At the heart of the event, Cajamar’s General Director, Sergio Pérez, discussed the economic situation in Spain, monetary policy and the geopolitical outlook with Luis de Guindos. The former Vice-President of the European Central Bank noted that “after the pandemic, the sources of growth in the Spanish economy changed and began to be linked to population growth, driven by immigration, which is essential for Spain but must be orderly, legal and managed”. He added: “Our ECB estimates were that two thirds of Spain’s growth came from population growth and one third from productivity. Given that this increase in population is behind the growth of the Spanish economy, it also has some side effects. We must try to preserve the positive effects while reducing the negative ones”.
In this regard, he pointed out that although Spain’s GDP has grown significantly in recent years, the increase in GDP per capita has been more moderate because of the extensive growth model. He also noted that, in terms of wages, the tax burden and growth below the rate of inflation have meant that “current per capita consumption is similar to its 2019 level”.
De Guindos also explained that “the ECB’s mandate is price stability. A central bank is not all-powerful. It can do what it is able to do: pursue price stability and financial stability. The ECB has raised interest rates twice and there have been no second-round effects, but it is acting pre-emptively because inflation is close to 4%. It must proceed with great caution. During the earlier crisis in Ukraine, the situation was different and the need to raise rates was clear. Markets are pricing in a further two or three interest-rate increases, but another important factor is that the ECB is reducing its balance sheet”.
On the housing situation in Spain, he said that “there have been housing-demand pressures and regulation has restricted the supply of rental properties, leading to higher prices. Increasing the supply of rental housing must be a priority if we are to address the problem”, because in some cities it may constrain growth in the labour force. He explained that rental housing accounts for around 20% of Spain’s housing stock, compared with 30% in Europe.
He also commented on Europe’s role in the global landscape, noting that “we are experiencing a bittersweet moment. On the more bitter side, we have the conflict in the Middle East, the shock of rising energy prices, weaker economic growth and high inflation. On the positive side, Europe is set to grow by less than 1%; unemployment is at a historic low; inflation has accelerated to 4% and core inflation stands at 2.5%. And I always like to highlight the positives: we are not in recession, nor are we going to be; employment is performing well, although inflation remains high”.
Finally, he said that Spain’s pension system is the backbone of the country’s welfare state and should remain outside political debate during an election campaign. He concluded by noting the absence of the Toledo Pact from the current debate.
The closing remarks were delivered by Cajamar’s Second Vice-Chairman, Bartolomé Viúdez, who, after thanking De Guindos and praising his expert insights, said that “we are not simply going through a period of transition, but a genuine change of era, marked by geopolitical and economic uncertainty and by an increasingly close relationship between political, business and financial decisions and the evolution of the international order”.
Viúdez reaffirmed the continued relevance of the cooperative model as a response to today’s challenges: “The cooperative spirit is more alive and more necessary than ever. An organisation endures when it keeps its values intact while renewing the way it responds to the needs of each moment. This is how we understand our model: one capable of demonstrating, through action, its economic, social and environmental sustainability and of offering a close and supportive response to current challenges. This spirit guides our course and drives us forward without leaving anyone behind. That is why Cajamar will continue to stand alongside families, companies, cooperatives, self-employed people, farmers and Murcia society as a whole, as we have always done”.
He concluded: “We want to do so by remaining close to people: not only by financing projects, but also by sharing knowledge, promoting innovation, building partnerships and creating shared value. This commitment is strategically important in areas that are decisive for our present and future, such as the agri-food sector, efficient water management and sustainability understood in all its dimensions: social, environmental and economic. Because global challenges require shared responses, rooted in the territory and designed for the long term. And the people of our Region know a great deal about that”.
Link to video: Murcia Cajamar Business Meeting
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