Public finance recovery: the SDI rejects any increase in levies on very small businesses

As the Government prepares the draft budget for 2027, the Union of Independents and Very Small Businesses (SDI) calls on the executive not to make small businesses bear a new tax or social burden.

The employers' organization recognizes the need to restore public finances, but believes that an increase in mandatory levies could further weaken companies already facing a slowdown in activity and cash flow pressures.

37.700 bankruptcies in the first half of 2026

According to the study published by Altares17.486 insolvency proceedings were opened in the second quarter of 2026, representing a year-on-year increase of 5,4%.

In total, nearly 37.700 companies defaulted during the first half of the year, 1.500 more than in the same period in 2025. The number of failures thus remains nearly 40% higher than its pre-pandemic level.

• Companies with fewer than 3 employees recorded an 8,3% increase in failures;
• Companies less than 3 years old are experiencing growth of 12,7%;
• Direct judicial liquidations represent 66,3% of all proceedings;
• more than three-quarters of the proceedings concerning companies less than 3 years old lead directly to liquidation.

In the construction sector, 4.148 defaults were recorded in the second quarter of 2026, a slight decrease of 0,8% year-on-year. This overall improvement, however, masks persistent difficulties in public works and property development.

Altares also notes a 9,5% decrease in the number of jobs at risk, estimated at 58.830 for the quarter.

The deadlines for some government-guaranteed loans were also singled out.

The SDI points out that some companies still have to complete the repayment of their State-guaranteed loan (PGE) in 2026. According to the union, these deadlines can exacerbate the cash flow pressures of some very small businesses.

Altares believes, however, that government-guaranteed loans (PGEs) and social security debts now play a more limited role in the overall dynamics of business failures. Furthermore, a restructuring mechanism remains available to companies experiencing repayment difficulties.

Work harder to support the business

Rather than increasing taxes, the SDI advocates a policy designed to support economic activity. The organization cites, in particular, an amendment adopted by the Senate during the examination of the draft social security financing bill for 2026.

This Senate proposal The plan is to increase the annual working time from 1.607 to 1.619 hours, representing an average of twelve additional hours per year. Its implementation is expected to be subject to collective bargaining, without altering the statutory 35-hour workweek. However, this measure does not currently constitute a new set of working hours.

"The real plan to restore public finances isn't an Excel spreadsheet in a Bercy office; it's a company that hires and a customer that consumes. A thriving small business means VAT, corporate tax, and social security contributions naturally flowing into the state coffers. Continuing to strangle businesses to balance the budget is sawing off the branch we're sitting on." Marc Sanchez, general secretary of the Union of Independents and Very Small Businesses.

A call to control public spending

For the SDI, the draft finance law for 2027 will have to make a choice between a further increase in tax revenues and a strategy based on structural reforms, support for activity and reduction of public spending.

The organization announces that it will remain mobilized against any measure likely to increase the tax, social or administrative pressure on self-employed workers and managers of very small businesses.

Illustrative image of the article via Depositphotos.com.