PIMEEF president Alfonso Rojo has called for additional support for businesses in Ibiza and Formentera, warning that rising fuel costs, tax burdens and wider economic uncertainty could make the coming months increasingly difficult.

Small and medium-sized businesses in Ibiza and Formentera are facing growing financial uncertainty as inflation and operating costs continue to put pressure on their finances. Alfonso Rojo, president of the Small and Medium-Sized Business Federation of Ibiza and Formentera (PIMEEF), issued the warning after taking part in a meeting with the Balearic Government on Wednesday, 14 October 2026.

The meeting brought together representatives of affected economic sectors to discuss the consequences of rising inflation and consider possible measures and financial assistance.

Rojo warned that many businesses were already under significant pressure, highlighting the combination of high tax burdens, rising fuel prices and uncertainty over the wider economic outlook.

PIMEEF Calls for Greater Financial Support

One of the main requests raised by PIMEEF was a review of the €300,000 threshold associated with the European Union's de minimis state-aid framework.

The federation argues that the current limit can become an obstacle for otherwise viable businesses that may need additional financial support or access to funding during a period of economic difficulty.

Rojo stressed that businesses in the Balearic Islands can be financially sound while still facing challenges in accessing the assistance they may need when costs rise sharply.

The federation is calling for measures that would give businesses greater flexibility and help them manage the financial consequences of the current economic situation.

Rising Fuel Costs Add to Business Pressures

Fuel prices are among the main concerns highlighted by the PIMEEF president.

Rojo explained that businesses had been able to absorb some of the initial increases since March by relying on existing reserves. However, he warned that those reserves had since been depleted, meaning the financial effects of rising costs could become more apparent.

For companies operating in Ibiza and Formentera, changes in fuel prices can affect transport, deliveries, logistics and other day-to-day activities.

Combined with existing tax obligations and other operating expenses, these increases are adding to the pressure on businesses across the islands.

Tourism Benefits Do Not Remove Wider Economic Risks

The economic outlook for the Balearic Islands remains complex. According to Rojo, the conflict in Iran has benefited the region's tourism sector by redirecting some visitors towards the islands.

However, he cautioned that this development would not necessarily shield local businesses and households from the wider economic consequences of inflation.

Families could also face higher costs associated with mortgages and loans, adding to the pressure on household budgets.

The warning highlights the difference between tourism demand and the wider financial health of the local economy. Even when visitor numbers support certain businesses, higher operating expenses and borrowing costs can continue to affect profitability and purchasing power.

Calls for Lower VAT on Certain Food Products

During the meeting, business representatives also called for the Spanish Government to reduce VAT on certain food products.

The proposal forms part of a broader request for measures that could ease the effects of rising prices on both businesses and consumers.

PIMEEF argues that the current situation requires a coordinated response from public administrations, with the Balearic Government and the Spanish Government working together to identify appropriate forms of support.

No approval of the requested measures was confirmed in the report.

An Uncertain Outlook for Ibiza and Formentera Businesses

The warnings from PIMEEF underline the concerns facing small and medium-sized enterprises as they navigate rising costs and an uncertain economic environment.

For businesses in Ibiza and Formentera, the coming months will depend not only on tourism activity but also on fuel prices, inflation, financing conditions and any policy measures introduced to support the local economy.

The federation is urging the authorities to respond to the situation with targeted action, arguing that additional support may be needed to help businesses remain financially resilient.