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Foreign investments: France remains the most attractive country in Europe

2021-06-08T08:02:44.337Z


France is still the first destination for foreign investment in Europe. Good news in full economic recovery and alo


Cock-a-doodle Doo !

France retains its position as the first destination for foreign investment in Europe, won hard won in 2019. While the economic crisis caused by the pandemic raised fears of a downgrade, the annual barometer of the audit firm EY (Ernst & Young) devoted to the attractiveness of France and presented this Monday confirms this place of number 1. A gold medal not so trivial as that, especially at the time of the recovery.

Because the 20,000 foreign companies, with their 2 million jobs, contribute 30% of our exports.

Thus, 985 foreign investment projects in France were announced in 2020 against 975 in the British dolphin and 930 in Germany.

Among these investments, those of Barilla, the world leader in dry pasta.

The more than century-old Italian group owns five factories in France with its industrial bakery brand Harrys and employs 1,500 people.

While it invests 10 to 15 million euros per year in France, the amount rose last year to 33 million euros, including 28 million euros for the construction of a new production line on its Vendée site in Talmont-Saint-Hilaire.

"The support of local authorities is quite exceptional"

"In May 2020, at the worst time of the crisis, when I went to the board (

Editor's note: management committee

), I did not think that these investments would pass, remembers Miloud Benaouda, president of Western Europe of the Barilla group. . It was a good surprise. But at the same time, I never had any difficulty in selling France. "

Third market for the group, with 630 million euros in turnover, after Italy and the United States, France has long won over the pasta master.

“I often hear France bashing,” says Miloud Benaouda.

The reality is that, even if everything is not perfect, France is a favorable ground for investment.

The support of local authorities is quite exceptional, the country is very competitive with a low energy cost, one of the best transport networks in Europe and qualified people.

"

Read alsoG7: does the global agreement on the taxation of multinationals at a minimum of 15% go far enough?

And the corporate tax, one of the most important in the world? “The difference is not that huge with Italy, assures the boss. In recent years, it has fallen by two points per year. As soon as he came to power, Emmanuel Macron orchestrated the gradual decline in corporate income tax, from 33% to 25% by 2022. At the end of 2020, the elimination of part of the taxes of production. A gesture of 10 billion euros per year, presented in the recovery plan as the weapon of "industrial reconquest".

According to the EY barometer, if France retains its crown, it nevertheless records an 18% drop in foreign investment projects in 2020. That is more than the European average (-13%) and much more than its English competitors ( -12%) and especially German (-4%). Why this tumble? “This is neither the management of the crisis nor the recovery plan, decrypts Marc Lhermitte, associate director at EY. On the contrary, 44% of the leaders questioned believe that the French stimulus plan has been more effective than in other countries. This drop is due to the sectors most affected by the crisis: aeronautics, tourism and the automobile. Sectors that are very important for the French economy. When Airbus slows down, all its subcontractors who slow down, such as Ratier Figeac

(Editor's note: specializing in propellers and owned by an American group)

.

"

Projects in Ile-de-France exceed those in Greater London

If, in the business services or industrial equipment sectors, the decline in foreign investment projects reached 40%, the pharmaceutical industry posted an increase of 32%, furniture 31% and financial services 11%. .

"This is the first time that the number of foreign investment projects in finance in Ile-de-France has exceeded that of Greater London," notes Marc Lhermitte.

We went from 30 projects in 2019 to 41 in 2020 while, on the other side of the Channel, they did the opposite, going from 67 to 38. ”

So what will happen in 2021, at the time of the revival when international competition will be exacerbated? “France has everything to keep its first place, predicts Marc Lhermitte. She, who had the reputation of going back on her commitments to companies, shows consistency and discipline. “Indeed, from the Elysee to Bercy, no question of increasing taxes, despite the state of public finances. A path in the opposite direction to that taken by the United States and England, who have announced that they want to raise their tax rates. This does not prevent France from retaining one of the heaviest corporate taxes in the world and which will nevertheless have to attract foreign capital. Because with an external deficit of 53 billion euros in 2020, or 2.3% of GDP (its highest level since 1951),it will need foreign investors more than ever.

Source: leparis

All business articles on 2021-06-08

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