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Garamendi warns of economic collapse in Ceuta and calls for support

The head of Spain’s employers’ association sees serious economic consequences from the migration crisis in Ceuta and urges the public to support local businesses and hospitality venues.

Antonio Garamendi, president of the Confederación Española de Organizaciones Empresariales, warned on 31 August 2026 of an economic collapse in Ceuta as a result of the recent migration crisis. He spoke of an “economic calamity” and urged Spaniards to visit the city and spend money there, thereby supporting local businesses and workers. His remarks were reported by several media outlets on Sunday.

The Ceuta Chamber of Commerce estimates direct losses for Handel, hospitality and Tourism since the end of July at tens of millions of euros. According to the chamber, August turnover in key sectors was well below the previous year; some industries reported falls of more than 50 per cent. Figures quoted publicly vary by source, but point to a sharp drop in visitor numbers and bookings. RTVE and other media outlets have also reported last-minute cancellations, restricted opening hours and postponed events.

The the Government of Spain has announced additional measures in recent days to stabilise the situation. Following a cabinet decision on 25 August, coordination between government services in Ceuta was strengthened and a central command structure was set up. The aim is to bring security and administrative procedures together and enable swift decisions. At the same time, the economy department has indicated that support for local businesses is planned, including through existing programmes to develop the area.

Ceuta depends heavily on cross-border traffic with Morocco, retail and seasonal tourism. The sudden fall in visitor numbers and temporary restrictions in the city particularly affected small and medium-sized businesses. Business representatives warn that, alongside immediate losses in turnover, confidence has also been damaged, and that this will take time to repair. The chamber believes recovery could take longer if domestic demand does not pick up and travel operators continue to hesitate.

Attributed remarks: Garamendi urged people to “support Ceuta and spend money there”, describing the situation as an economic wreck. Official bodies announced closer coordination and support. Outstanding questions include the precise design of financial assistance, possible tax relief and the deadlines for applying for it. Reliable forecasts for the pace of recovery are not currently available; according to assessments that broadly agree, it will depend on the security situation, the effectiveness of administrative measures and the response from visitors.

Editor: Daniel Mayer (Article created with AI assistance).

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