France "slightly in recession" according to the head of Medef

Mr. Martin expressed concern on BFMTV/RMC about the government's plan to cut 5 billion euros from reductions in employer contributions on salaries.

The Medef, the two other representative employers' organisations, the CPME and the U2P, as well as the FNSEA (farmers) and the UDES (employers in the social and solidarity economy) published an unusual joint press release on Monday to express their alarm, even mentioning the risks of "relocations" in certain sectors.

"My prediction is that we are already slightly in recession and that the (government, editor's note) forecast of 1,1% growth in 2025 is probably very optimistic," he declared, and "we must not do anything that alters the dynamics of businesses."

INSEE is currently forecasting a fourth quarter of 2024 with zero growth, for total growth of 1,1% this year.

Mr. Martin described last week's budget debate in the Finance Committee of the National Assembly as "quite distressing and distressing," "a Lépine competition for fiscal creativity," which was ultimately not adopted.

More generally, he felt that politicians were making "many proposals in good faith without the slightest impact study (...) As economic players, this worries us and we are holding back on our investment and hiring decisions. This is my own case," he assured.

Asked about the difficulties of the automotive equipment manufacturer Valeo, he denounced "a form of amateurism" with "regulations that change completely from one year to the next", on aid for the purchase of electric vehicles, or on the date of the ban on the sale of thermal vehicles for example.

"Legislators and regulators need to question the consequences of their actions and then stick to their decisions," Martin said.

He was, however, optimistic about the resumption of discussions between social partners on unemployment insurance and the employment of seniors on Tuesday: "I predict that we will make progress, particularly on progressive retirements."

He finally considered that the law on pensions should not be repealed, under penalty of "going completely off the rails", and that the government should not "soften" on the postponement until July of the indexation of pensions, which is supposed to save four billion euros.