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

“The situation for businesses is complex.” From the outset, 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 head 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 acts as a catalyst for global economic tensions. “What has influenced our exchanges is this conflict and its potential repercussions,” he explains. At the forefront are energy prices. Gas, oil, industrial raw materials, and agri-food products are experiencing sharp fluctuations. “We are seeing tension in oil and gas prices, but also across the entire production chain,” he points out.

If the barrel drops below $95, the pressure remains strong. “Businesses show restraint. There is no desire to explode prices,” highlights 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 acknowledges.

Business bankruptcies down 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 established,” he notes, citing entrepreneurial dynamism driven by young people. In Bouches-du-Rhône and Alpes-Maritimes, bankruptcies even decreased by 11%: “We must commend these entrepreneurs who fight daily.” But not all sectors are equally affected. Non-food and certain service activities are suffering more. “The situation is differently impacted depending on the professions,” emphasizes 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 certain small businesses to open on this day has sparked a strong reaction. “It is completely out of touch with real life,” states 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 leave costs 10 billion euros for social security

On the social front, there are also reasons to protest. Sick leaves are a growing 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 cannot let this get out of hand.” Medef supports the government’s plan to strengthen controls: “It is necessary to better regulate, prevent abuse, and support the return to employment.” It also advocates for the return of waiting days in the private sector.

In this uncertain climate, businesses are moving forward cautiously. “We are in a waiting and time mastery process,” he summarizes. A stance dictated by another observation: “France is reaching the end of a budgetary story, with no room for maneuver.”

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 broad national consultation with 600,000 entrepreneurs. The goal: 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.