Congress protects the town bar for its social function

The bars and grocery stores in small towns are much more than a place to go for a drink or to buy bread.

Oliver Thansan
Oliver Thansan
29 March 2023 Wednesday 04:55
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Congress protects the town bar for its social function

The bars and grocery stores in small towns are much more than a place to go for a drink or to buy bread. They are a meeting point and perform the function of a social center that is not paid or allows them to face economic difficulties due to the low profitability of these establishments. But, yesterday, this changed when the plenary session of Congress agreed by a large majority to process the bill that considers bars, restaurants and small businesses that provide their services in municipalities with less than 200 inhabitants as social economy entities.

The rule was proposed by the Teruel Existe platform, which has been defending the interests of those small businesses in towns for a long time. With 303 votes in favor, 23 against and 10 abstentions, the Lower House agreed to equate these establishments with cooperatives, mutual societies, foundations, labor societies, insertion companies, special employment centers, fishermen's guilds or agrarian societies.

With the consideration of social economy entities, bars and establishments in municipalities (including street vendors) with no more than 200 inhabitants may benefit from the incentives and aid that this type of organization has recognized. By being included in this group, they would have facilities such as simplification of administrative procedures related to their activity or discounts in Social Security contributions if they hire unemployed people.

Teruel Existe has defended on several occasions that the basic services that are provided privately are disappearing in emptied Spain. Likewise, many municipalities that do not reach a minimum number of inhabitants do not have or see the survival of their bar and food trade in danger. These places act as a social center for coexistence and meeting between the people of the municipality, since there are no other leisure, cultural or restaurant services.

This situation affects the daily life of many citizens, especially those older people who live in these less populated places. And, for this reason, small businesses are fundamental here, because they promote social relations. However, in places this small, they can hardly follow the logic of profitability or the market, making it difficult for them to keep the blinds up.

The regulation stresses the importance of these services to fight against depopulation, since there are academic studies that maintain that in those municipalities where a bar or a small store is closed, its neighbors leave the place much faster than where they remain open. "Research indicates that these establishments promote community cohesion and economic development. On the contrary, it is socially accepted that a town is doomed when they close," says the bill.

According to the Social Economy Law of 2011, entities of this type are considered to be those that seek "the primacy of people and the social purpose over capital", that promote "internal solidarity" and "local development", or that seek "the insertion of people at risk of social exclusion, the generation of stable and quality employment, the reconciliation of personal, family and work life and sustainability".

This legal framework asks administrations for things like eliminating "obstacles that prevent the start and development" of their activity, "simplification of administrative procedures" or that their owners have bonuses in business contributions to Social Security for hiring unemployed people. A little help that, from now on, will help the village bar or grocery store continue to feel like a meeting place to get together with neighbors and friends.