The Medef “is not for us to continue to do whatever it costs”
Measures are needed “targeted” to support the purchasing power of the French, but without “overreact”estimated Thursday the president of the Movement of companies of France (Medef), Geoffroy Roux de Bézieux. “In inflation as it stands there are things that will not last (…). We must not overreact and above all we must target very precisely » aid measures, he said on RTL.
The President of the Republic has promised a certain number of measures by the summer (revaluation of pensions, social minima, food vouchers, etc.) to support the purchasing power of the French in the face of inflation which has reached 4.8% in April according to the National Institute of Statistics and Economic Studies (Insee), and which might exceed 5% as early as May. The Medef “is not so that we continue to do whatever it takes”he insisted once more, preferring measures concentrated on “people who really need”.
The employers’ organization notably proposed the creation of a “petrol voucher”which companies might pay to their employees who come to work by car. “Eighty percent of employees come to work by car and with the price of super or diesel at 2 euros, it is expensive to go to work”recognized Mr. Roux de Bézieux.
This acceleration in inflation is also hitting businesses, which are seeing the cost of raw materials soar. “We are faced with things that we do not know (…) The last time we had inflation above 5% was in 1983, I believe; I was still at school. So yeah, it’s hard.”for companies, said Mr. Roux de Bézieux.
In front of this situation “companies play their part”by reducing their margins so as not to fully pass on the increase in their costs in their selling prices, and for some of them, by having increased wages since the beginning of the year. “Obviously, if inflation ends at 7% or 8%, there will surely be other discussions [sur les salaires]. Today is too early to tell.”said the boss of Medef.
