Nearly six out of ten bosses (58%) plan to postpone their investments or recruitment in the event of a victory for the New Popular Front in the legislative elections, and 36% if the National Rally rises to power.
Small bosses are not immune to the concern that is affecting the French in this period of political instability. But they always put their business first. Thus, for one in two SME bosses (47%), the drop in activity in the short and medium term is the first fear expressed, according to a study published this Thursday, June 27 by the Confederation of SMEs (CPME).
“Business leaders are full of common sense. They know that their business could be affected by the current situation. Any instability in the landscape worries those who have to go and get orders,” explains François Asselin, president of the CPME, to Les Echos.
The political stability of the country (35%) and the “maintenance of civil peace” (29%) therefore only come in second and third concerns among the “priority subjects” submitted to the 1,066 owners of SMEs and VSEs who responded. to the survey by the employers’ organization, which brings together 239,000 companies, employing more than three million employees (survey carried out online from June 20 to 24).
The NFP is more feared than the RN
Furthermore, nearly six out of ten bosses (58%) plan to postpone their investments or recruitment in the event of a victory for the New Popular Front in the legislative elections, and 36% if the National Rally rises to power. The proportion falls to 12% if the presidential majority wins the vote, organized on June 30 and July 7, it is specified in this survey, carried out online among 1,066 business leaders from June 20 to 24.
Several economic measures proposed by the left-wing New Popular Front coalition are criticized by those surveyed, such as the increase in the minimum wage to 1,600 euros net per month. In this hypothesis, 14% of entrepreneurs say they would cease their activity, 27% that they would lay off workers and 50% that they would pass these salary increases on to their selling prices.
“Only one manager in ten (10%) would be able to absorb this additional cost in their margins”, indicated the CPME in a press release.
A very large majority of business leaders (83%) are also opposed to reducing weekly working hours to 32 hours, as well as 82% against lowering the legal retirement age, proposed by both the NFP and the RN. 78% believe that an increase in public spending would present a risk of bankruptcy for France and “being placed under the supervision of the IMF”, according to the CPME.
Opinions are, however, more favorable regarding the indexation of pensions (70% are not opposed) and salaries (50%). Likewise, the reform of unemployment insurance divides: half of the bosses questioned believe that the executive should reconsider this text, which toughens the compensation rules, but for which the decree has not yet been published.
Clément Lesaffre with AFP
