Following the surprising results of the general elections, business leaders are not seeing much clearer things. In the absence of an absolute majority in the National Assembly, uncertainty still prevails. An uncertainty “which will not reassure businessmen”, while it is “difficult to know who will govern France”, laments the Confederation of Small and Medium-sized Enterprises (CPME) in a statement published on Monday.
“The worst thing would be to postpone investments and hiring. The economic crisis that would result would be serious and damaging for all French people,” he continued.
For the national secretary of the CPME, Jean-Eudes du Mesnil, who was invited to Radio Classique on Monday morning, “the mood is a real concern.” Michel Picon, president of U2P, agrees, reminding BFM Business that “all small businesses and businesses in general need stability and visibility.”
“Entrepreneurial front”
There is also concern and “surprise” as the National Rally, whose programme had been received with scepticism by most businessmen, obtained a number of seats in the House of Representatives that was much lower than expected. But the project of the New Popular Front (NFP), which emerged victorious from the ballot boxes, does not reassure them either.
The president of U2P believes in particular that the increase in the minimum wage to 1,600 euros net “will be a problem” for many VPEs and SMEs, since this measure defended by the left-wing alliance “will not be limited to the minimum wage”. It will affect the entire salary scale. For Jean-Eudes du Mesnil, it is even “a red line”. “We must not hit the wall of reality and take into account the financial situation of our country,” he said.
Business organisations also reject the indexation of wages to inflation and the freezing of prices. “We are freezing prices, which reduces companies’ margins and at the same time we have to increase payrolls. All this is a deadly equation,” worries Michel Picon.
The Union of Independents and Small Businesses is equally concerned and is calling for a “business front with a view to supporting the National Assembly in finding an economically and socially sustainable path for our four million businesses and just as many employees.”
“Without making any substantive judgement on the values expressed, we note that the economic programme of the coalition presiding over the legislative elections presents major dangers for the French economy and, more particularly, for artisans, traders and managers of VSEs,” said Marc Sánchez, Secretary General of IDE.
CPME warns against “putting France under surveillance”
Finally, employers’ organisations point out that the future government has extremely limited room for budgetary manoeuvre. Any increase in the deficit “will have repercussions on the cost of money and on rising interest rates,” warns Michel Picon.
“Either we try to correct the situation and restore their confidence (in companies, ND). Or, on the contrary, we put a shovel on their heads and it will be a disaster for everyone. And what will happen tomorrow? What will happen? France will be under surveillance,” warns Jean-Eudes du Mesnil.
Michel Picon believes that we must remain “optimistic” because “there seem to be solutions between the democratic republicans and all the new parliamentarians who can, if we change the political software in our country, build something to serve our country and its companies.”
Source: BFM TV
