At the beginning of this year, which is now approaching its last days, we accepted that the pandemic was definitely behind. it was time to regain the rhythm lost in the last two years.. However, the optimism did not last long and russia invaded ukraine in february It leads to a new international conflict at the gates of the European Union. What the Russians did not expect was that the “lightning action” would soon turn into a conventional war, and Ukraine had for months forced them to retreat on several fronts; largely thanks to the support of Western countries, among whom we count as partners of the European Union.
We Europeans, in the defense of Ukraine money, weapons and training for his soldiersas well as the reception of refugees and the imposition of strong economic sanctions on Russia and some of its most important citizens. In return, there was the following access: cheap russian gas Mainly German, on which the Central European industrial apparatus is based. Likewise, the Ukrainian expertise Russian in cereals and sunflower and fertilizers, first take control of the agri-food sector, then all sectors of our economies. this high and persistent inflation was the main way the war reached us. Along with this came the measures of the European Central Bank, which carried out very aggressive interest rate hikes that destroyed the gradual normalization forecasts in monetary policy.
So things this is where the family business begins to suffer. Inflation and interest rate hikes directly affecting the purchasing power of consumers.Those who see some of the purchasing power of savings accumulated during the months of quarantine and pandemic restrictions fluctuate. It also required tightening conditions for access to credit, so business investments they will be reconsidered or simply postponed. Additionally, the intrinsic opportunity cost of any investment project rises at least to the limit of expected inflation, meaning many are no longer attractive.
In the next year 2023 family businesses will face a very complex new scenario. The good thing is that successive hard and difficult exercises have accustomed us to being startled and living with extreme uncertainty. On the other hand, if there’s one thing family businesses in Alicante have demonstrated since the protracted 2009 crisis, it’s their ability to adapt and overcome any challenge.
This flexible model, of which the Alicante family business is a clear cornerstone and whose values are perfectly represented through AEFA, is the best guarantee of success and survival in the complex environment in which we will have to live.