The eco brief. France confirms its economic attractiveness

France is at the forefront of host countries for foreign investment in Europe. (GERARD JULIEN / AFP)

This is the annual ranking communicated by Business France, the structure responsible for the international development of our companies. This traditional study, published each year at the same time, reviews a series of indicators and compares them with those of other countries. The real news is that France is overtaking the United Kingdom and Germany and is therefore becoming the leading host country for European investment. France is also the leading host country for research and development activities in Europe.

Business France sifted through the indicators in question for 2019 by extending the observation until the third quarter of this year, between the two confinements. The Covid-19 pandemic being global, it is reshuffling the cards for all countries. But the various support and recovery plans deployed by the State and the French government allow most of its achievements to be retained. In short: the difficulties of many sectors such as hotels, restaurants, aeronautics and the automobile industry are very real. But the main fundamentals of France’s attractiveness are not affected.

What particularly attracts investors? This ranges from telecommunications to the cost of electricity to infrastructure and employee productivity. The strengthening of the digitalization of the economy is a driving force of attractiveness: France devotes seven billion euros to digital and start-ups to help them develop.

Another indicator that explains the ranking of France: access to capital for companies of all sizes, particularly through credit. In the third quarter of this year (between the two confinements), 88% of requests from VSEs were satisfied and 90% for SMEs. These are all assets for resisting the pandemic in the long term, provided that the efforts made by the public authorities are continued.

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