Palma.—The Centre for Economic Research in the Balearics (CRE) has called on all social organisations and political groups in the Balearics to find a “joint response” to the crisis, claiming the region is on financial “red alert.”.

The ResearchCentre comprises investigators from the Balearic University and the Sa Nostra banking foundation.
CRE Director Antoni Riera said yesterday: “All of us need to lend a hand because the future of the islands is in jeopardy.” He furthered that the Balearics shouldn't leave its problems to the next generation but tackle them now.

Riera said that policies which are being applied now to tackle the crisis are “not giving the results we had hoped for.” He suggested that a solution would more likely be found were a collective approach to the financial crisis to be adopted. “Whether it's on an individual or political level, businesses and unions need to think in terms of joining forces to promote competitivity. “There will be no success where there is conflict,” Riera said. Currently, the CRE is predicting a downturn in economic growth this year of 0.5%. Riera said that the current tourist model in the Balearics has “run its course”. He claimed that although government figures might show that visitor numbers are at record levels, this is not being reflected in terms of income or employment.

Riera was speaking at the presentation of the CRE social and economic report for 2011. Growth that year had been registered at just 0.3 percent. He explained that the difficulties being experienced by the Balearics are structural and need a reassessment of business activity which can generate wealth.