On 24 August 2026, in Saint-Pierre, Édouard Philippe met with Réunion's business community in an exceptional political session. The declared presidential candidate and former Prime Minister put on the table a subject successive governments have long sidestepped: the reform of the octroi de mer. Katy Hoarau, president of the Medef Réunion employers' federation, voiced collective frustration: "I am tired of being spoken about as resilient people."
A protective but controversial tax
The octroi de mer is a local import tax levied in France's overseas departments and regions. In Réunion, it generates approximately €300 million per year for local authorities — a significant share of their operating budgets. It also acts as a protective barrier for local production by raising the cost of competing imports. This dual fiscal and protectionist role makes it structurally difficult to reform without adequate compensation.
Philippe sets conditions for any change
Without calling for immediate abolition, Philippe judged it necessary to "open the debate." He set a firm condition for any change: any revision must rest on a broader tax base whose revenues flow entirely back to the territory to fund local investment. The political signal is clear: the issue is on the presidential agenda for the first time since the 2022 debates on reforming the European authorisation framework.
Businesses facing multiple structural obstacles
Beyond the octroi de mer, Réunion's entrepreneurs listed the main barriers to competitiveness: maritime freight and construction costs, the complexity of European aid schemes, mainland French standards poorly adapted to the overseas context, and administrative delays. They are calling on France to play a stronger role in Brussels to defend the specific interests of Europe's outermost regions (ORs).
Why it matters
The octroi de mer is both a fiscal lifeline for Réunion's municipalities and a cost-of-living driver regularly criticised by consumers. Its reform would require complex negotiations involving Brussels, Paris and local authorities. Whether maintained, amended or replaced, the question raised by Philippe in Saint-Pierre reveals a growing tension: Réunion needs an economic model less dependent on national solidarity and more anchored in local production and competitiveness.