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

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“The situation for businesses is complex.” Right away, Stéphane Benhamou, president of Medef Sud, sets the tone for the coming months. During the monthly meeting, held in the presence of Lucille Bernard-Reymond, president of Medef Hautes-Alpes, the leader 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 influenced 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 seeing tension in oil and gas prices, as well as throughout the production chain,” he specifies.

Even if the barrel falls back below $95, the pressure remains high. “Companies are showing restraint. There is no desire to explode prices,” underlines Stéphane Benhamou. Many absorb the increases in their margins. But some sectors, such as transportation or cleanliness, have no choice but to pass on the costs. “When it’s too severe, adjustments need to be made,” he admits.

Business bankruptcies decrease by 11% in the department

Despite these tensions, the regional economic fabric holds up. Bankruptcies are increasing but remain contained. “There have never been so many companies,” he recalls, citing an entrepreneurial dynamism driven by the youth. In Bouches-du-Rhône and Alpes-Maritimes, bankruptcies even decline by 11%: “We must congratulate these entrepreneurs who fight daily.” But not all sectors are equally affected. Non-food sectors are suffering more, as are certain service activities. “The situation is perceived differently depending on the trades,” insists the president.

This is not the only debate animating the entrepreneur network. The issue of May 1st is a point of contention. The possibility for some small businesses to open on this day has sparked strong reactions. “It is completely out of touch with real life,” says Stéphane Benhamou. He denounces “a lack of political courage” following 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’s unfair.”

Sick leaves cost 10 billion euros to social security

On the social front, there are also reasons to protest. Sick leaves are a major concern. “It is an economic scourge,” he warns. The cost is enormous: 10 billion euros for social security and up to 120 billion in lost productivity. “We can’t let this go unchecked.” Medef supports the government plan to strengthen controls: “It is necessary to better regulate, prevent abuse, 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 forward 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, maneuvering margins are non-existent.”

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