The social situation is critical in France. This is the observation made by the French Red Cross which launched a call for help on Monday, September 4 after that of the Restos du Cœur. The association said it was facing financial difficulties due to a sharp increase in its operating costs and an influx of requests for assistance.
Call heard since the Federal Alliance of Crédit Mutuel, which brings together 14 of the 18 regional federations of the mutual banking group, announced, the next day, donations of 7.5 million euros to the Red Cross and 5 million to Food Banks . But these recent calls illustrate the crisis that these associations are going through. The Express takes stock.
Red Cross: Crédit Mutuel to the rescue
In its press release on Tuesday, the Crédit Mutuelle Alliance Fédérale Foundation recalls that it had already paid in March aid of 5 million to the Restos du Cœur – whose group also provides security for the premises via its subsidiary Homiris. “To deal with the emergency and allow the structures to continue their support for the most deprived”, the Crédit Mutuel Alliance Fédérale, via its foundation, announces that it has also decided to donate 7.5 million euros for the Red Cross. as well as 5 million for food banks. “The economic viability of these organizations is now threatened. Faced with rising food prices, without support, they could be forced to reduce the number of beneficiaries as well as the quantity of food distributed,” according to the press release.
At the start of the year, Crédit Mutuel Alliance Fédérale announced the creation of a “societal dividend, consisting in allocating 15% of its net income each year to the financing of environmental and solidarity transformation projects”. “With the societal dividend (525 million euros in 2023), we put our performance at the service of collective utility” and “unlock an additional 12.5 million euros to deal with the emergency this winter”, have declared Nicolas Théry, president of Crédit Mutuel Alliance Fédérale, and Daniel Baal, managing director, quoted in the press release.
Restos du Cœur: the Arnault family and the State for help
The association has already welcomed 1.3 million people in 2023, compared to 1.1 million for the whole of last year. At the same time, its operating costs are increasing, in particular that of its purchases of food products, which are then redistributed free of charge to the beneficiaries. “It is an extremely complex situation, which we have never known at Restos”, since their creation in 1985 by Coluche, and which plunged the accounts into the red, tells AFP its president, Patrice Douret.
Sunday, due to financial difficulties, the Restos du Cœur announced that they would be forced to reduce the number of their beneficiaries this winter, launching an appeal for help to which companies and the government responded the same day, promising immediate support of 15 million euros.
Monday, the family of Bernard Arnault, owner of the world number one luxury LVMH, announced to pay aid of 10 million euros to the Restos du Cœur.
Why is this a “special year”?
In question ? Inflation in France increased by 4.8% over one year in August, according to INSEE. One of its main drivers remains the price of food products, which jumped 11.1% year on year last month, a slower rise than in July (12.7%) but still significant.
Inflation in France
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“The number of people we support is increasing very significantly,” Nathalie Smirnov, director general of the French Red Cross, told AFP. Requests for aid increased by 7% in the first half, compared to the same period last year. And 2022 was also marked by a jump in requests (+22%) compared to the previous year.
“We are also facing an increase of 45 million euros in our energy costs, despite the aid measures put in place by the State”, she added. “The French Red Cross has a deficit of 25 million euros that we cannot make up for on energy”. Result: overall, the association expects a deficit of between 45 and 50 million euros this year. “We solemnly appeal to the generosity of companies and public authorities to help us get through this special year,” said the director general of the association created in 1864.
Last year, it had an operating budget of 1.7 billion euros, including 1.5 billion devoted to the management of more than 600 health, social and medico-social establishments and services.
About 200 million euros are dedicated to the social action carried out by its volunteers, such as food aid schemes. Half of the sum comes from donations and the other half comes from the activities of the association which generate income (training, first aid station service during events).
And the others ?
At Secours Populaire, requests for aid are increasing “by 20 to 40%, depending on the territory”, a “very worrying” situation, according to Houria Tareb, national secretary. “We lack human and financial resources”.
Several associations are working on new solutions to continue to source products, while preserving their finances.
The Salvation Army, which has “virtually doubled” the food aid it provides compared to the period before the health crisis, is for example trying to make agreements with farmers.