Andorra Rejects ERTOs and Rent Cuts for Pas de la Casa Businesses Amid RN-20 Closure

Andorra's government has rejected calls for temporary employment regulation files (ERTOs) and rent reductions on commercial premises to support businesses in Pas de la Casa hit by the ongoing closure of the RN-20 road. Head of Government Xavier Espot described ERTOs as "counterproductive," noting they would require sacrifices from employers, who must still cover part of wages; employees, facing reduced pay; and public administrations, including the CASS social security fund. He added that implementing them would be logistically challenging.

Speaking after an extraordinary Council of Ministers session held in Pas de la Casa on Wednesday, Espot said the requests from some business representatives and the local Economic and Social Council lacked unanimity. Instead, he argued that measures approved last week—such as deferring IGI taxes and easing employer CASS contributions—combined with new additions would "close the circle effectively" without such steps.

On rents, Espot said the government would not intervene, leaving it to private negotiations between tenants and landlords. He noted that many restaurants had already secured reductions voluntarily.

The session approved targeted supports, primarily for Pas de la Casa firms affected by the RN-20 landslide near Mérens-les-Vals on 31 January. French authorities expect repairs to take three months. New measures include:

- Electricity bill rebates via FEDA (despite Sercensa handling local supply): 25% for 25-50% revenue drops compared to last year; 50% for losses over 50%, covering the full closure period.

- €200 vouchers per trip for Andorran hauliers fetching goods from France via the Cerdanya-Puymorens detour, and for tour operator buses linked to Pas hotels, ski areas or events—to offset extra fuel costs without passing them to consumers.

- Immediate access to soft loans (24 months, government-covered interest, personal guarantees) for microenterprises (up to five workers, low turnover, Pas-only operations).

- A €30 weekly fuel voucher for Occitania tourists refuelling €30+ at Pas de la Casa stations, redeemable at the tourist office to boost local spending.

Government officials toured shops, lunched locally with Encamp commune representatives, and heard concerns from traders. Espot highlighted micro-firms' vulnerability, especially those away from ski lifts relying on day-trippers, and pledged priority support. Shops further from pistes have suffered most.

Comune d'Encamp, which convened its council in Pas de la Casa, unanimously approved a €2 million package (5% of its budget) across mobility, taxes and direct aid. This features €120,000 to make the L'Hospitalet-Pas bus free (co-funded with government); hygiene tax deferral to October plus rebates (50% for 25-50% losses, 100% above 50%); and €1.56 million in direct grants covering 25% of verified losses (EBITDA basis, minus interest, up to €10,000 per owner) for retail, hospitality, lodging and leisure rentals. Applications open soon, monthly or post-reopening.

Foreign Minister Imma Tor will meet her French counterpart Jean-Noël Barrot on Thursday to discuss progress, with further site visits planned. Minister Spokesperson Guillem Casal said works are on track with no delays foreseen.