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Medef Sud: between tensions and resilience, companies facing geopolitical and social shock

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“The situation for businesses is complex.” Immediately, Stéphane Benhamou, president of Medef Sud, sets the tone for the coming months. During the monthly meeting, in the presence of Lucille Bernard-Reymond, president of Medef Hautes-Alpes, the boss of entrepreneurs emphasized the need to “stay in touch with the real life of businesses.”

Because the context is heavy. The war in the Middle East is acting as a catalyst for global economic tensions. “What has dominated our exchanges is this conflict and its potential repercussions,” he explains. At the forefront: energy prices. Gas, oil, industrial raw materials, and agri-food products are experiencing sharp fluctuations. “We are witnessing a tension on oil and gas prices, but also on the entire production chain,” he specifies.

If the barrel falls below $95, the pressure remains strong. “Companies are showing restraint. There is no desire to blow prices up,” emphasizes Stéphane Benhamou. Many absorb the increases on their margins. But some sectors, such as transportation or cleanliness, have no choice but to pass on the impact. “When it is too harsh, adjustments must be made,” he acknowledges.

Business failures drop by 11% in the department

Despite these tensions, the regional economic fabric holds. Failures are increasing but remain contained. “Never have so many companies been created,” he recalls, mentioning an entrepreneurial dynamism driven by young people. In Bouches-du-Rhône and Alpes-Maritimes, failures even decrease by 11%: “We must congratulate these entrepreneurs who fight daily.” But not all sectors are equally affected. Non-food industries suffer more, as do certain service activities. “The situation is differently impacted depending on the professions,” insists the president.

It is not the only debate animating the entrepreneurial network. The question of May 1st is a tense subject. The possibility for some small businesses to open on this day has sparked strong reactions. “It is totally out of touch with real life,” asserts Stéphane Benhamou. He denounces “a lack of political courage” after the government’s retreat. “The French are in favor, and employees are paid double. Why prevent bakers or florists from working when Amazon is open? It is unfair.”

Sick leaves cost 10 billion euros to social security

On the social front, there are also reasons to protest. Sick leaves are a cause for concern. “It is an economic scourge,” he warns. The cost is colossal: 10 billion euros for social security and up to 120 billion in lost productivity. “We cannot let this slide.” Medef supports the government’s plan to strengthen controls: “We must better regulate, prevent abuses, and support return to employment.” It also advocates for the return of waiting days in the private sector.

In this uncertain climate, companies are moving cautiously. “We are in a waiting and time control process,” he summarizes. A posture dictated by another observation: “France is reaching the end of a budgetary story, the room for maneuver is non-existent.”

Finally, Medef is actively preparing for the upcoming political sequence. A major press conference, organized around Patrick Martin, the head of Medef, will launch a national consultation with 600,000 entrepreneurs. The goal: to bring up priorities from the field and weigh in on the public debate. “We want the economy to be at the heart of the proposals,” is the flagship demand of Medef Sud.