Patrick Martin, president of Medef, France's leading employers' organization, has raised concerns about the nation's economic performance, noting that France is falling behind countries like Spain, Germany, and the Netherlands. He warned of a "décrochage de la France," a term that refers to the country slipping behind its European counterparts economically. Martin emphasized the need for policymakers to recognize this trend and take decisive action to reverse it. Martin highlighted a growing number of annual business closures across France, affecting both large corporations and a wide range of industries, including manufacturing and construction. He noted that unemployment is on the rise, with significant job losses in the private sector, even as the public sector has seen some job creation. This imbalance has contributed to a challenging labor market, especially for young people, whose unemployment rate in France is seven times higher than in Switzerland. Martin also criticized the government's decision to abandon a planned pension reform, which he estimated costs the economy 6 billion euros annually. He pointed out that France's limited fiscal flexibility is due to budget constraints, making it difficult to implement necessary economic adjustments. Without changes, he argued, the country will continue to struggle with stagnation and declining competitiveness. To address these issues, Medef has proposed increasing the value-added tax (VAT) to 22.5% on non-essential goods, with the revenue used to reduce social contributions for businesses. This measure, according to Medef, could create 300,000 jobs by making it more affordable for companies to hire workers. The proposal aims to balance increased tax revenue with reduced labor costs, encouraging economic growth and job creation.