To remain attractive, a challenge for France

During the health crisis, the question of the attractiveness of France was not on the front of the stage. The public authorities had, understandably, other priorities. "It is now, now that the blue souls and bodies start to fade," reports Eric Fourel, the chairman of EY France, on the occasion of the publication of the annual report to the cabinet on the subject.

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And it arises in several ways. First, because France was in 2019 the coveted first place on the podium of european foreign investments with 1197 announced projects (an increase of 17% in one year), ahead of its competitors historical, the United Kingdom (1109 projects) and Germany (971 projects). It was also the 1st place, already conquered the previous year, for the production and R&D. Although disrupted, the foreign companies are in the process of implementing or have already completed 65% of such projects, said that the study EY. In contrast, 25% of the investments have been deferred, and 10% cancelled.

What is going on in the rear view mirror is certainly important, but the question arises especially because what will happen now is crucial for the French economy and the return of growth. The foreign companies in the territory employ 2 million people, representing 21% of the expenditures of private R&D and 31% of our exports. However, two-thirds of world leaders have already planned to significantly reduce their spending this year. While the debate on the relocation of some activities is growing, "the alert is strong at the production sites," notes the study. "There will be only a few hundreds of investment in Europe and in a few sectors only (telecoms, video games, shopping...)," says Marc Lhermitte, a partner at EY.

"Competition recovery"

In this context, it must not, therefore, miss the mark... And this mark, it is, of course, the exit from the crisis : 80% of executives polled at the end of April believe that "the nature and scope of the stimulus" – mostly national - will sway during arbitration regarding the location of their future investments. In other words, "it is a competition of the stimulus that is played," says Marc Lhermitte.

But investors also question the degradation of the accounts that could potentially constrain the action of the State enabling France to remain competitive and on the counterparties tax stimulus plans. For the moment, the executive sweeps of a reverse of hand any tax increase, assures that the drop IS expected before the crisis will be maintained, Bruno Le Maire saying the same always fight for the taxes of production are particularly high in France - will be reduced.

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France is highly regarded and "must reassure over its immediate strategy," says the study. And in addition to the confirmation of the "tax framework and regulatory environment that has allowed France to regain investors 'confidence since 2017", this will also include the technological acceleration, the adaptation to the climate emergency, a new distribution of supply chains, the reaffirmation of the France as "a hub of technological strong and a must in Europe", or the protection of the industrial asset that is highly at risk, concludes the study.

Sujetsindustrieeurope7 commentairesmichel andre debelairle 28/05/2020 at 12:03 pm

France is very attractive When one sees that there are 14 banks, of which 4 French lend at negative interest rates, Some even pay to be able to lend us C is never before seen

Feather on The Ventle 28/05/2020 11:50

failing to be attractive to investors, France is especially for economic migrants in search of social benefits of all kinds.

Theo Adlerle 28/05/2020 at 11:31 am

Why the€ is never cited on the brake at the comp. French ?

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