Lehendakari announces activation of the Basque Country’s industrial shield to address the impact of the conflict in the Middle East
- Imanol Pradales has stated that the Basque Government “will activate everything within our power. We will also ask other institutions, both European and state-level, to do what falls within their remit. We are already working on an initial package of measures in case the situation drags on and becomes more complicated.”
- The Lehendakari has urgently convened the Industrial Defence Group in order “to anticipate developments, coordinate efforts and activate the Basque Country’s industrial shield under any scenario.”
Lehendakari Imanol Pradales announced this afternoon at the meeting of the Industrial Defence Group that “it has once again become necessary to activate the Basque Country’s industrial shield to address the consequences of the conflict in the Middle East.” In this regard, he revealed that “we are already working on an initial package of measures in case the situation drags on and becomes more complex.”
The Lehendakari made these remarks during the fourth meeting of the Industrial Defence Group, which he convened urgently last week in response to the impact that the military escalation in the Middle East is having on Basque industry.
Speaking before around 50 leading representatives of Basque industry, chambers of commerce, clusters, the provincial councils, Confebask and other productive sectors of the country, Pradales stated that “we will activate everything within our power. We will also ask other institutions, European and/or state-level, to do what falls within their remit.”
“We are here to listen to the industrial sector in order to provide the best possible response”
The meeting of the Industrial Defence Group, held this afternoon at the headquarters of the Basque Technology Park in Zamudio, was chaired by the Lehendakari and attended by the Basque Government’s Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi; the Minister for Finance and Treasury, Noël d’Anjou; the Minister for Economy and Employment, Mikel Torres; the Deputy Generals of Bizkaia and Gipuzkoa, Elixabete Etxanobe and Eider Mendoza; and the Deputy General of Álava, Ramiro González.
“We are here to listen to the industrial sector, to share information and jointly analyse what we need to do in order to provide the best possible response,” the Lehendakari said.
He stressed that the conflict surrounding Iran “represents the greatest energy and logistical threat to Basque industry since 2022.” Given the seriousness of the situation, he brought together the Industrial Defence Group “with the aim of anticipating developments, coordinating efforts and activating the Basque Country’s industrial shield under any scenario.”
Imanol Pradales warned that there is “a determining factor” in the impact of the situation unfolding in the Middle East: “the duration of the conflict. The impact on the economy and on people’s pockets will be different if this lasts only a few weeks or several months.”
“We are concerned about industry and industrial employment. And we are concerned about how this crisis affects people’s pockets through the price of energy, transport or many basic goods,” he reiterated.
Pradales warned that a prolonged blockage of the Strait of Hormuz would mean that “we would face severe effects on energy costs, supply chains and demand in certain markets.” This situation would affect key sectors such as steelmaking, the chemical industry, the automotive sector and machine tools, “which are particularly exposed to any prolonged disruption in energy markets, international logistics routes or certain export markets.”
The conflict surrounding Iran is already affecting Basque industry. The Middle East is the Basque Country’s seventh-largest export destination, with exports worth €1.13 billion a year. At present, 42 Basque companies with 63 commercial operations in the region are directly suffering the consequences of the conflict.
Industrial Defence Group
The Industrial Defence Group was created a year ago at the initiative of the Lehendakari to present a united front in addressing the challenges faced by Basque industry amid changes in the international context. On that occasion, the forum was convened following the launch of Donald Trump’s new tariff policy. This time, the Lehendakari has convened the Industrial Defence Group in response to the military escalation in the Middle East and its impact on Basque industry.
The group has a threefold mission: first, to monitor the impact of the war in real time and carry out a joint diagnosis with industry; second, to analyse the results of active listening with the affected industrial sectors and design defence and support measures for industry; and third, to present the measures adopted.
