PLF 2025: CPME fears "layoffs and business failures"

The president of the Confederation of Small and Medium-Sized Enterprises (CPME), François Asselin, said on Sunday 13 October that he feared "layoffs and business failures" following the reduction in employer contribution relief planned by the government in its 2025 budget project.

"Such a measure will not encourage wage increases," François Asselin believes in an interview with the Journal du Dimanche (JDD). "Worse: the increase in labor costs risks upsetting the income/expenditure balance and leading to layoffs and business failures," he adds.

According to the government, 4 billion euros could be saved thanks to these reductions.

"This increase mainly concerns companies in activities with a high labor rate, in which many employees are paid around the minimum wage: cleaning, personal services, security, etc.," according to Mr. Asselin.

Industry Minister Marc Ferracci tried to reassure people on the programme "Sunday in Politics" on France 3. "This concern is legitimate, we must pay close attention to it and I respond above all that this budget will evolve" in the context of the parliamentary debate, he said.

"Personally, I will be in favour of the proposals of parliamentarians who review the balances in favour of a little more support for businesses, particularly the smallest ones," assured Mr Ferracci.

"What the government is planning is to review the profile of these exemptions so that when an employer increases an employee's salary by 100 euros, he loses less exemption and that it is therefore more of an incentive to increase salaries," the minister continued.

For the president of the CPME, "we have a clear lack of political momentum to tackle the real problems of France: a social system at the end of its tether, the over-administration of hospitals and national education, to address the most urgent issues."

Business leaders "feel like they are a target," Mr. Asselin also said.

He also deplores the reduction in aid for apprenticeships. "A few days ago, the Minister of the Budget promised not to attack SMEs and people who work. However, 70% of apprenticeship contracts are signed in SMEs. This is a great success that has contributed to the fall in unemployment in recent years," he assures.

As for the reduction in the ceiling for sick leave compensation, Mr. Asselin believes that "it is the companies that will pay the difference."