Law simplifying economic life in France: a major lever to boost business activity

While the public debate has focused on the amendment concerning Low Emission Zones (LEZs), the law simplifying economic life in France primarily represents a concrete improvement for businesses: greater clarity, smoother processes, and faster procedures. This is the whole point of administrative simplification in the service of regional economic competitiveness.

Simplifying the daily lives of businesses in France

The reform introduces several structural measures to facilitate business operations and access to markets:

• Improved access to public procurement: by 2030, all public contracts from the State, its operators, hospitals, and social security organizations will be processed through the single platform "Place". The legislation also raises the threshold for exemption from advertising for works contracts and creates a system for reserving lots for innovative startups.
• Facilitating business transfers: eliminating the obligation to directly inform employees in companies with more than 50 employees and reducing the information period from two to one month in smaller structures.
• Generalization of mediation with the administration: in the event of mediation, the interruption of appeal periods and the suspension of limitation periods become the rule, including for mediations by the Defender of Rights.
• Creation of a simplification council tasked with conducting "business tests" on draft standards with an economic impact.

Supporting the cash flow of retailers and very small and small businesses

In a context of economic tensions and increased competition, particularly from foreign platforms, the law provides several mechanisms to strengthen the cash flow of local economic actors:

• monthly payment of commercial rents at the tenant's request;
• capping of security deposits at three months;
• simplification of certain tasks through a declaration system.

Accelerate industrial and energy transition projects

The law also aims to strengthen France's industrial attractiveness and facilitate projects related to the energy transition:

• implementation of exceptional measures to accelerate industrial and energy projects (cell towers, biodiversity, planning procedures);
• possibility, under certain conditions, of classifying industrial-scale data centers as projects of major national interest (PINM), facilitating their implementation (urban planning, connection, recognition of major public interest);
• possibility of refusing a building permit for a data centre in the event of tensions on the water resource;
• extension of the PINM qualification to certain strategic infrastructures (highways, TGV lines).

Simplify relationships with banks and insurance companies

The text also strengthens transparency and the protection of companies in their financial relationships:

• free closure of business accounts;
• free annual sending of a statement of expenses to small businesses;
• harmonization of tariff schedules planned for January 1, 2027.

In insurance matters, compensation deadlines are regulated: 6 months if an expert assessment is required, 2 months otherwise. After the insured's agreement, the insurer has one month to arrange for repairs or 21 days to provide compensation. The requirement to provide a reason for cancellations is extended to professionals, and very small and small businesses (TPE-PME) will be able to cancel their contracts at any time after one year.

Streamlining government action

Finally, the law simplifying economic life provides for a modernization of public action with the elimination of bodies that have become obsolete (National Commission for the Elimination of Anti-Personnel Mines, Commission for the Rights of Performing Artists and Producers, Observatory of Natural, Agricultural and Forest Areas), the merging of certain structures and the automatic extinction of advisory committees after three years, unless there is justification for their maintenance.

According to Roland Lescure, Minister of the Economy, Finance and Industrial, Energy and Digital Sovereignty: "This text provides concrete answers for companies that want to invest in France. By adapting our sustainability reporting obligations, modernizing our competition rules, and removing the land and administrative obstacles that were hindering our data centers and industrial projects, we are creating the conditions for sustainable competitiveness."

According to Serge Papin, Minister for Small and Medium-Sized Enterprises, Trade, Crafts, Tourism and Purchasing Power: “Less complexity, fewer unnecessary constraints, more time to produce and innovate: that’s what our local economy needs. By voting, Parliamentarians are giving our SMEs, micro-enterprises, and shops a breath of fresh air. That’s a good thing done!”

Illustrative image of the article via Depositphotos.com.