France’s More Positive Image = Greater Foreign Investment 2018 Record Year
France’s attractiveness for investors (from 2017 to early 2018) is clearly on the rebound, significantly reducing the gap that has existed with the United Kingdom and Germany.
What’s the story in numbers :
- 8 investors out of 10 now find France more attractive (because it’s more competitive)
- 31% increase in projects announced in 2017 (779 to 1019) compared to 6% increases in Germany and the United Kingdom
- Paris becomes the most attractive European metropolis for foreign decision-makers, slightly ahead of London
- Number of industrial projects has increased by 52% in 2018 (212 to 323)
Social and Research Advantages :
Foreign capital,and their companies employ 1.8 million people in France and achieve 16% of value-added and account for 22% of R & D expenditures (non-agricultural and non-financial market sectors).
New Attractiveness in Perspective and Context :
Positive dynamics and changing attitudes however do not mark a definitive change. When questioned business leaders and investors called on France not to relax efforts ; in making taxation in France more competitive, simplifying administrative resquirements and reducing the cost of labor.
Also to be noted is that these investment projects in France do not generate as many jobs as in other countries with an average of 25 jobs per project in France against 42 in the United Kingdom or 122 in Poland. Some of this of course rests with the nature of the investment projects
However, many like David Gurlé, a well known French entrepeneur and currently CEO of Symphony Communication Services, believe that France has turned an economic corner.
« France is competitive in terms of labor costs, the Research Tax Credit is a great stimulus and the government is now leading a real pro-business policy that restores confidence in the economic future of the country. »
Partner,Chartered Accountant
