All of Garamendi's battles (won)

Barcelona / MadridThe president of the Spanish employers' association CEOE, Antonio Garamendi, is a figure in himself. A figure who, in the almost eight years he has led the organization, has had to protect his throne on several occasions, and for the moment he has come out on top. However, his image is beginning to weaken, and despite having already taken charge of modifying the association's statutes to eliminate the limitation of two four-year terms per president to be eligible for a third term, the next elections are scheduled to be held in 2026, and recent events do not indicate his best performance.

The latest battle was fought in the elections of Cepyme (the Spanish employers' association for small and medium-sized enterprises integrated into the CEOE) held this week. Antonio Garamendi's favorite candidate, Ángela de Miguel (until now president of CEOE-Cepyme, now president, Gerardo Cuerva), was running for re-election. For some time now, despite being part of the same organization, the former president of Cepyme and Garamendi had been distancing themselves, and in fact, Cuerva's campaign has been based primarily on a bitter criticism of the CEOE president. Cuerva, whose closeness and complicity with the president of the Community of Madrid, Isabel Díaz Ayuso, has been revealed, criticized, specifically, Cepyme's "lack of autonomy" vis-à-vis the CEOE and accused Garamendi of dividing business leaders and facilitating the approval of the reduction of the working day.

Although it is ultimately a battle that Garamendi won, according to business sources consulted by ARA, the final result shows that "Garamendi does not emerge too strengthened." The margin of votes with which De Miguel won is narrow—only 30 votes—and "reveals a certain discontent among Madrid business leaders with the CEOE president," these sources point out. A prominent expert on employers' organizations puts it this way: "I assume Cuerva won't just leave [the employers' association] like that, and with such a tight result, who knows if he could make the jump to the CEOE by presenting a candidacy in the elections," scheduled for next year.

A political movement

Sources close to the social partners interpret Cuerva's battle with Garamendi as a "very important internal political movement" within the Spanish employers' association due to Cuerva's proximity to Ayuso's PP, and even to Vox. Without going any further, Ayuso herself introduced Gerardo Cuerva, on May 5, at a breakfast meeting in Madrid with these words: "Gerardo has stood out for his brave and genuine defense of Spanish SMEs, before everyone and above all, something I want to recognize because these are not easy times."

Other sources see the victory of De Miguel's candidate as a "paradoxical" situation. After all, the CEOE, as the largest employers' association, is the one that chooses the representative of the SME employers' association, although in some cases they may have different interests. "It's as if Fomento chose the Pimec candidate," one source says. Regarding De Miguel's profile, there is a disparity: from the outside, some believe he will maintain a low profile and follow Garamendi's lead, while from within the employers' association, they argue that he will have "a much more active role than Cepyme has had until now."

A source very close to the CEOE president in Madrid explains that the general feeling is that he has the support of Spanish business, but above all "of big business," which leaves him in a rather protected position. After all, the same source explains, Garamendi may be right-wing economically, but "he doesn't embrace the far-right." "Politically, he is more centrist than people think," this source asserts.

"The CEOE, in general, doesn't like this banner [that of the far right], especially in the sectors that are most dedicated to export and that are more dynamic," they assert. "This can be read as the first battle between the employers' association and the hardline of the Spanish right." "Garamendi has the unwavering support of large companies," say others. The issue of pardons has perhaps been the element of greatest tension or the one that has most exposed the business community, "also because of how the Madrid press addressed it."

More battles

This isn't the only battle Garamendi has had to fight in recent years. In 2022, he debated the presidency of the CEOE with the vice president of Foment del Treball, Virginia Guinda. A move that highlighted the uneasy relationship between the Catalan and Madrid employers' associations, despite the fact that Fomento is one of the founders and holds a vice presidency at the CEOE. Guinda didn't get enough votes, and ultimately Garamendi and the president of Fomento, Josep Sánchez Llibre, made peace with the latter, maintaining the vice presidency of the CEOE and, since then, aligning with most of Garamendi's positions. "There is great cordiality with the CEOE and complicity with Garamendi," say sources at Foment. "The political and social tension has led to our alignment."

They are also in line with the crusade with Pimec and Conpymes and their battle to enter social dialogue with a seat on the Economic and Social Council (CES). "We regret that the Spanish government wants to dynamite social dialogue by allowing Pimec to join," they criticize. The same is true of the National Advisory Commission on Collective Agreements (CCNCC), which the CEOE, with the support of Fomento, has already taken to court to prevent the entry of the SME employers' association.

Nevertheless, Garamendi cannot let his guard down. Next year, the CEOE elections will be held, and Garamendi will most likely run again, although the move to eliminate the restriction didn't please everyone. It's possible, therefore, that he will face strong opponents.