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Business bankruptcies: “The hardest part is not over”, warns the boss of Medef
Patrick Martin, president of Medef, was the guest of “4 Vérités” on France 2, Thursday February 1st. – (France 2)
Patrick Martin, president of Medef, was the guest of “4 Vérités” on France 2, Thursday February 1st.
The issue of the free trade agreement between the European Union and Mercosur is highlighted by the farmers’ crisis. What should be done ? “We have to give ourselves time because there are what we call mirror clauses, particularly on the environmental level. We have to check that the four South American countries that are involved respect the minimum”explains Patrick Martin, president of Medef, guest of “4 Vérités” on France 2, Thursday February 1. “We need to move towards greater international trade, we will go less towards China, let’s go towards South America when the day comes”he adds.
Agricultural crisis: “It’s starting to have consequences”
Is the agricultural crisis already having consequences on businesses? “This is starting to have consequences because it is blocking trucks and deliveries, not just in the food sector. This should not get out of hand”, warns Patrick Martin. With what consequences? “We are now in a just-in-time situation in the industry […]. So this disrupts the proper functioning of a certain number of factories, for example automobiles. For now, it’s not a disaster.”he adds.
The number of business failures has been exploding in recent times, particularly during the last quarter of 2023. “There is a deteriorating situation, a deteriorating demand, with purchasing power issues which in my opinion are being resolved, because there are interest rates which are increasing, therefore there is less investment in housing, which is a real disaster. […] Inevitably, this leads companies that were already fragile to file for bankruptcy.”specifies the president of Medef.
In which sectors? “It’s a lot in the building industry, and the periphery of the building: real estate agencies, real estate developers. It’s really also the hotel and catering industry. This is starting to affect companies of a certain size”, notes the boss of bosses. Has the hardest part passed on business bankruptcies? “I think that the hardest part is not over. In particular, we will have a first and second quarter that will still be difficult in terms of activity. Afterwards, interest rates should fall, purchasing power will increase again”develops Patrick Martin.