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# [LA RÉUNION] November 5 Strike: 30,000 Réunion Businesses Under Budget and Social Pressure
- URL: https://businessoi.media/en/la-reunion-greve-du-5-novembre-30-000-entreprises-reunionnaises-sous-pression-budgetaire-et-sociale-en/
- Published: 2026-11-06T02:50:12.000Z
- Updated: 2026-11-06T02:50:12.000Z
- Description: The national strike of 5 November 2026 hits La Réunion in difficult conditions: 18% unemployment, 30,000 businesses dependent on LODEOM, and a 2027 budget threatening the island's exemption schemes.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, Économie, emploi, Finances publiques, Revue matinale, #en

The national day of mobilisation on 5 November 2026 resonated strongly in La Réunion. Against an already tense economic backdrop — with 1,098 business insolvencies recorded between June 2024 and June 2025, up 15.5% in a year — Réunion unions amplified a national movement demanding pay rises, pension increases and stronger public services.

## A fragile economic fabric

Réunion enters this social sequence with an unemployment rate of 17.5 to 18%. The national budget debate, centred on €43 billion in savings for 2027, is reigniting tensions over the LODEOM — the social charge exemption scheme that directly protects nearly 30,000 businesses and 120,000 jobs on the island. Last year, even a proposed cut of €350 million triggered a massive mobilisation from Réunion's elected officials and business community.

## A 2027 budget under pressure

At national level, the French economy is going through a difficult patch: GDP fell 0.1% in the third quarter of 2026, according to INSEE. The deficit target is set at 5% of GDP for 2027\. In this fiscal tightening context, overseas territories fear that DROM-specific exemptions — LODEOM above all — could become easy targets for the cuts ahead. The 30,000 businesses covered in Réunion alone represent the backbone of the island's economy.

## Demands that go beyond pay

Beyond wage increases, the inter-union coalition is calling for tax justice, the preservation of public services — particularly in overseas territories — and conditioning of public business subsidies. These demands are directed at a government that, according to Roland Lescure, rules out a general tax increase but is seeking structural spending cuts.

## Why it matters

Réunion is on the front line of national budget trade-offs. On an island where unemployment is three times the national average and business insolvencies are breaking records, any cut to support schemes translates immediately into job losses. The 5 November mobilisation isn't a metropolitan phenomenon viewed from afar — it's a local economic alarm.