The Minister for Overseas Territories’ Priorities

Nearly 30,000 businesses and 120,000 jobs in Réunion will benefit from the full reinstatement of the LODEOM, the social security contribution exemption scheme designed to support employment and competitiveness.

On February 26, 2026, the Minister for Overseas Territories, Naïma Moutchou, wrote to elected officials in the overseas territories to confirm that these territories remain a priority and to announce several important measures.

“The LODEOM addresses the specific difficulties linked to insularity and supports employment and the competitiveness of businesses,” the Minister stated.

In Réunion, where unemployment reaches 17.5%, this scheme is primarily for small businesses. For a bakery or restaurant with ten employees, the initial reform would have absorbed all the anticipated benefits, threatening the survival of many businesses.

Local economic stakeholders emphasize the importance of the LODEOM. This initiative contributes to competitiveness, youth training, and business stability. Its effects benefit the entire island and help to reduce unemployment.

The draft budget also includes security measures. Faced with the rise in drug trafficking, the government plans to double the customs force. Seizures and arrests of drug mules have already exceeded the 2024 figures.

Politically, the situation remains tense in Réunion. Overseas deputies had tabled two motions of censure, both rejected by the National Assembly, leaving the government’s decisions strengthened.

Between economic support and enhanced security, the Minister demonstrates her commitment to protecting employment, competitiveness, and social stability in the overseas territories, while taking into account the specific constraints linked to their insularity.