Employers’ organizations expressed their approval of François Bayrou’s appointment, emphasizing the need for increased visibility and stability in the business environment. Medef highlighted the importance of budgetary decisions that support growth, while the CPME and U2P urged quick approval of simplification measures. Concerns about political instability affecting investments were raised, with surveys indicating significant negative impacts on SMEs. Optimism was expressed by some organizations regarding Bayrou’s potential to address these challenges.
Employers’ Organizations Welcome François Bayrou’s Appointment
On Friday, the employers’ organizations expressed their satisfaction with the appointment of François Bayrou as they congratulated him on his new role. However, they underscored a collective hope for a return to the ‘visibility’ that has been absent since the recent political dissolution, a situation that poses a risk to the stability of businesses.
The Medef organization conveyed its wishes for Mr. Bayrou’s ‘full success,’ emphasizing that businesses serve as vital hubs for collective effort, job creation, and wealth sharing, which aligns with the Prime Minister’s vision for reconciliation.
In a press release, Medef highlighted the necessity for future budgetary decisions to better consider the needs for growth and competitiveness, expressing hope for these changes to be implemented promptly.
Calls for Visibility and Simplification in the Business Environment
The Medef also mentioned its expectation that Mr. Bayrou would focus on advancing the ‘responsible competitiveness’ strategy introduced by the new European Commission. The organization pointed out that economic players require visibility, stability, and genuine simplification to thrive.
The CPME echoed these sentiments, wishing ‘full success’ to the new Prime Minister while stressing that small and medium-sized enterprises are eager for Mr. Bayrou to foster an environment of visibility, clarity, and stability. This has been a recurring theme for the Confederation in recent months.
Additionally, the CPME advocated for the swift approval of a budget and the realization of much-anticipated simplification measures. A law aimed at simplifying business regulations, initiated earlier this year by former Minister Bruno Le Maire, had its discussions in Parliament interrupted by the political dissolution. While the Senate adopted it in October, it is expected to be reviewed by the National Assembly in early 2025.
The U2P, representing local businesses, also extended its best wishes to Mr. Bayrou, reiterating the necessity for enhancing visibility and confidence among economic actors while resuming simplification initiatives.
Despite not experiencing a complete economic collapse since the dissolution in June, businesses are increasingly anxious about the effects of ongoing political instability on their operations. Investment hesitancy has been prevalent over the past six months, with the CPME warning that the current economic slowdown may escalate into a genuine crisis, as early warning signs are already emerging.
According to a quarterly survey conducted by Bpifrance Le Lab and Rexecode in November, over half (56%) of SME/TPE leaders reported that the political uncertainty is having a significant negative impact on their activities, with 45% opting to delay investments. Furthermore, a report from EY reveals that nearly half (49%) of foreign investors in France have scaled back or postponed their investment plans since June, despite France’s standing as the most attractive country in Europe for five consecutive years.
The latest monthly economic report from the Bank of France indicates that uncertainty levels are at their peak since late 2022, reflecting concerns across all sectors. Medef President Patrick Martin even suggested last Sunday in the JDD that France may have already entered a slight recession, a claim that has yet to be confirmed by Insee and the Bank of France, both of which predict zero growth for the fourth quarter.
On a hopeful note, the independent organization SDI stated that it is ‘time to turn the page on stagnation.’ Its Secretary-General, Marc Sanchez, viewed François Bayrou’s appointment as a potential opportunity to overcome the current political impasse.
Lastly, the UDES, which represents leaders in the social and solidarity economy, expressed the desire for a dedicated minister in charge of the SSE to be appointed in the next government, similar to the previous administration’s appointment of Marie-Agnès Poussier-Winsback.