The Basque Government activates the industrial shield with €1.047 billion to address the impact of the Middle East conflict
- This package of measures of the Basque industrial shield is structured around four pillars: Protection of people and employment; Financial support for SMEs; Transformation and diversification of SMEs; and Energy autonomy.
- €105 million will be allocated to the protection of people and employment.
- The financial support programme for SMEs will be put in place with €450 million.
- The Basque Government will allocate €215 million to increase energy autonomy.
Since the beginning of the war in Iran, the Basque Government has today announced the first package of measures of the Basque industrial shield, amounting to €1.047 billion, with a 51.4% increase in aid for the transformation and diversification of SMEs.
Following the meeting of the Governing Council, the Minister for Economy, Labour and Employment, Mikel Torres; the Minister for Treasury and Finance, Noël d’Anjou; and the Regional Minister for Industry, Energy Transition and Sustainability of the Basque Government, Mikel Jauregi, appeared today at a press conference alongside the Basque Government spokesperson, María Ubarretxena, to jointly announce the measures that the Basque Government will implement in response to the impact of the conflict in the Middle East.
The Lehendakari, Imanol Pradales, announced at the latest meeting of the Group for Industrial Defence the activation of the Basque industrial shield in response to the escalation of the conflict in the Middle East and its impact on Basque industry and society as a whole. “The experience of recent years,” stated the Lehendakari, “has shown us something important: we cannot control the global geopolitical landscape, but we can react quickly to protect our industry and our economy. That is our objective: to anticipate, coordinate efforts and activate the Basque industrial shield under any scenario.”
The measures presented today at the Governing Council seek to respond to the main needs expressed by representatives of Basque industry in order to address the consequences of the conflict in the Middle East.
This package of measures of the industrial shield to protect industry, the economy and employment in the Basque Country is structured around four pillars:
- Protection of people and employment.
- Financial support for SMEs.
- Transformation and diversification of SMEs.
- Energy autonomy.
Prentaurrekoa_20260317 JAUREGI
Protection of people and employment, for which the Basque Government will allocate €105 million. This support will be distributed as follows:
Employment promotion programmes with positive discrimination for unemployed people and/or affected companies: €100 million.
Supplements to unemployment benefits for workers in ERTE, more vulnerable and with lower wages: €2 million.
‘Aukera Berri’ programme for reskilling and redeployment of people from affected sectors: €1.5 million.
Support for the social economy to establish an extraordinary package of measures for Employee-Owned Companies and/or Cooperatives that suffer direct economic losses: €1.5 million.
Financial support for SMEs:
The Basque Government has also extended to 2026 the Financial Support Programme aimed at SMEs and Basque industry, affected by the international tariff framework and by the economic consequences arising from the conflict in the Middle East.
This involves reactivating an extraordinary instrument launched last year which, due to the persistence of global uncertainties, has proven fundamental to sustaining industrial activity in the Basque Country. This programme maintains a maximum capacity of €450 million in loans aimed at covering liquidity needs and working capital financing.
Loans will range between €100,000 and €1,500,000 for eligible SMEs and large companies, and between €30,000 and €120,000 for self-employed workers and professionals.
Transformation and diversification of SMEs:
SMEs are the backbone of Basque industry, which is why the Basque Government’s industrial strategy places support for SMEs at the centre of its activity.
In the face of uncertainty, the Basque Government continues to support SMEs and commit to their transformation. This translates into more support for R&D, the digitalisation of SMEs and their decarbonisation.
In the face of geopolitical and commercial uncertainty, the Basque Government will support SMEs in the diversification of their products, services and markets. This translates into more support for entry into new markets so that the Basque Country continues to be clearly export-oriented. Support will also be granted for diversification into high-growth sectors and for the development of new productive capacities.
An additional €87 million will now be added to the record 2026 budget, focused on the transformation and diversification of SMEs.
In total, the Basque Government will allocate €277 million in aid to SMEs, which represents an increase of 51.4% compared to the 2025 budget.
Transformation and diversification of SMEs
Programmes with a total increase of +€87 million
Diversification:
- Dibertsifika: new programme to expand productive capacities, open new business lines or access new sectors. €54 million
- Renove: promote the purchase of machinery and advanced equipment. €13 million
- Zabaldu+: promote entry into new international markets. €13.6 million
Innovation:
- Hazitek: transform the Basque industrial fabric through technological development. €169 million
- Fast Track Innobideak: promote smaller-scale innovation projects. €20 million
Digital boost:
- Applied AI: enable access to applied AI through a common pathway. €14 million
- Industrial Cybersecurity: shield the cyber-resilience of production processes. €14 million
Energy efficiency:
- Support for energy efficiency in SMEs. €52 million
To help SMEs access these programmes, SPRI has launched the first conversational assistant based on artificial intelligence, called “industrIA”. This service personalises the programme offering to the specific needs of each SME.
Energy autonomy:
The Basque Country has a high dependence on external energy sources, and the conflict in the Middle East has increased energy prices, negatively impacting our industry.
We want to strengthen the Basque Country’s energy autonomy and security so that our industry is less vulnerable to external energy shocks.
Through the EVE, the Basque Government will support co-investment in large photovoltaic and wind projects, with a budget of €80 million until 2030.
To increase energy security and the consumption of renewable energy such as green hydrogen from the Iberian Peninsula, the Basque Government, through the EVE, will support co-investment in energy infrastructure linked to hydrogen and CO2.
On the other hand, as announced by the Lehendakari, the Basque Government has proposed a ten-point plan of measures to reduce electricity bills. Among other initiatives, it is worth highlighting the proposal to reduce VAT on electricity from 21% to 5% for households, and to eliminate the electricity generation tax and reduce energy charges for companies.
In conclusion, the Basque Government will allocate €215 million to energy autonomy.
