French business lobby group Medef: The Iran war is not expected to trigger a surge in inflation

According to Golden Ten Data on March 24, Patrick Martin, head of France’s largest business lobbying group, Medef (Movement of the Enterprises of France), said on Tuesday that the organization does not expect the Iran war to cause a sharp rise in inflation. Martin stated: “Our expectation is that there will not be serious inflation, but economic growth will slow down, and the inflation rate may rise slightly, by about 0.1 percentage points—the exact increase will depend on specific circumstances.” Martin noted that Medef is more concerned about interest rates, as the industry organization believes that public finance conditions are “extremely severe.” However, he still welcomed government measures aimed at easing cash flow pressures for businesses in sectors such as transportation, including the deferral of tax payments. “There is no money left in the cash register,” he said. “We need to provide support for these sectors, such as farmers affected by fuel costs, but what is needed are liquidity measures—nothing more can be done.”