Relief in the workshop sector after the cancellation of the Low Emission Zones in Madrid by the TSJM

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The High Court of Justice of Madrid (TSJM) has issued a ruling that offers a respite for workshops and small businesses in the capital. The judges have annulled several key provisions of the Madrid City Council's Sustainable Mobility Ordinance, amended in 2021, which established Low Emission Zones (LEZs) in the municipality. This decision is based, among other reasons, on the "insufficiency of the economic impact report," which did not adequately consider the repercussions on the most economically vulnerable sectors.

The TSJM ruling underlines that the restrictive measures imposed by the Ordinance presumably affected people and business groups with less economic capacity, such as workshops, self-employed workers, and micro-enterprises. On repeated occasions, the Association of Workshops of Madrid (Asetra) had warned about the negative impact that the ZBE would have on the economic viability of workshops, pointing out the need for greater sensitivity on the part of municipal authorities.

Asetra has highlighted that the workshops not only provide an essential service to citizens, but also contribute significantly to the local economy by creating jobs and paying taxes. For this reason, the association has urged the City Council to consider these contributions when legislating on urban mobility and air quality.

The court decision leaves the rest of the text of the Ordinance intact, allowing other provisions on LEZs and Special Protection Low Emission Zones (ZBEDPE) to be established in the future, provided that the principles of proportionality are respected and thorough economic assessments are carried out. However, the annulment of these specific provisions is a relief for workshops, which saw the LEZs as a direct threat to their economic sustainability.

This ruling follows an appeal filed by the Vox Municipal Group, which alleged irregularities in the approval of the Ordinance. Although the TSJM does not question the need for measures to reduce air pollution in accordance with European and national regulations, it emphasizes the importance of balancing environmental objectives with the economic impact on the most vulnerable sectors, an aspect that was not sufficiently valued in the annulled regulations.

This ruling opens a new chapter in the regulation of mobility in Madrid, where the need to protect the environment must coexist with safeguarding the rights and economic viability of small businesses, particularly workshops, which play a crucial role in the daily life of the city.