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Viewing cable 09BARCELONA31, CATALAN BUSINESS PROMOTION UNIT SEEKS TO REASSURE U.S.

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Reference ID Created Released Classification Origin
09BARCELONA31 2009-03-11 12:47 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Barcelona
VZCZCXRO6380
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHLA #0031 0701247
ZNR UUUUU ZZH
R 111247Z MAR 09
FM AMCONSUL BARCELONA
TO RUEHC/SECSTATE WASHDC 1105
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHMD/AMEMBASSY MADRID 1064
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHLA/AMCONSUL BARCELONA 1284
UNCLAS BARCELONA 000031 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/WE (SAMSON/ZERDECKI) 
STATE ALSO FOR E AND EB 
 
E.O. 12958: N/A 
TAGS: ETRD PGOV AN SP
SUBJECT: CATALAN BUSINESS PROMOTION UNIT SEEKS TO REASSURE U.S. 
COMPANIES, OFFER SERVICES 
 
1. (U) Summary:  Josep Huguet, Regional Minister (Conseller) for 
Innovation, Universities and Enterprise, and Carme Botifoll i 
Alegre, Director General of Business Promotion for Catalonia 
(ACC1O) hosted a lunch March 2 for U.S. business representatives 
based in Catalonia.  AmCham President Jaime Malet led a group of 
representatives from companies such as Anheuser-Busch, Nike, 
Baker and McKenzie, Citibank, Cushman and Wakefield, Dow, Air 
Products, Mattel, Computer Sciences, Continental Airlines, Sara 
Lee,  Metaldyne Automotive, Hewlett Packard, Yahoo, Hudson, and 
Dow, among others.  The purpose of the lunch was to declare 
Catalonia still "open for business" and to lay out just what the 
region could do to help U.S. businesses weather the current 
financial crisis.  End Summary. 
 
2. (U) At a March 2 luncheon hosted by Conseller Josep Huguet 
and ACC1O Director General Carme Botifoll, Catalan officials 
told U.S. business representatives that ACC1O, a new unit that 
brings Catalonia's export promotion and foreign investor 
services offices together under one umbrella, could offer 
advisory and consultation services to U.S. businesses seeking to 
establish themselves in the region.  AmCham President Jaime 
Malet and CG Robinson also attended.  Huguet noted the 
Generalitat (Catalonia's regional government) 37 foreign offices 
worldwide to help potential foreign investors do business here. 
 
3. (U) Catalonia is competing with other European regions to 
attract foreign investment in a number of sectors including 
water technology, renewable energy generation, and solar panel 
production.  In addition, Catalonia is looking to become a 
center for innovation that would generate "clusters" across 
fields to create auxiliary enterprises, introduce technology 
cooperation, and offer assistance to those who wish to start new 
enterprises.  Huguet planned to use Barcelona's designation as 
the seat of the Union of the Mediterranean to create and attract 
an even broader range of companies and disciplines. 
 
4. (U) AmCham President Jaime Malet underscored the significant 
U.S. stake in the region when he said a full 14% of the region's 
 investment comes from across the Atlantic, and 60% of the U.S. 
total investment in Spain comes to Catalonia.  In addition, 50% 
of research and development in Spain is conducted by 
U.S.-affiliated businesses.  Anheuser-Busch, Nike, Baker and 
McKenzie, Citibank, Cushman and Wakefield, Dow, Air Products, 
Mattel, Computer Sciences, Continental Airlines, Sara Lee, 
Metaldyne Automotive, Hewlett Packard, Yahoo, Hudson, and Dow 
were among the companies that participated in the lunch. 
Surprisingly, nearly all of them listed the same problems as 
they went around the table.  Chief among them:  finding quality 
employees, lack of English language skills among university 
graduates, and too much bureaucracy, including delays in 
obtaining work visas for the employees they bring to Catalonia. 
It was mentioned that although Barcelona's two main business 
schools, IESE and ESADE, ranked among the world's best 
international institutions, the other Catalan-based schools 
ranked at the bottom, according to European surveys. 
 
5.  (SBU) Comment:  Catalonia, like other regions in Europe, is 
facing serious long term economic challenges.  Officials are 
pulling out the stops to keep companies already here and to 
attract any others that might be interested.  Barcelona's 
quality of life, Mediterranean climate, and reputation for 
seriousness gives the region an advantage over some others, 
however, the Catalans know they cannot take anything for 
granted.  With unemployment at 11.8% at the end of 2008, the 
highest since 1999, an economic slow down of 0.9%, and more and 
more businesses forced to retrench, the region is going to have 
to work hard to keep pace with the competition.  End Summary. 
 
ROBINSON