France is still at the top of the attractiveness ranking in Europe, according to the new EY barometer, for investments foreign countries with 1,222 establishments or extensions announced . Better than being in the lead, it shows a progression of 24% in 2021 compared to 2020. And above all, in a Europe still struggling with 5,877 projects. The continent has not returned to its pre-pandemic level with only 5% more than in 2020, and still -12% compared to its best year in 2017. A French first place which also relegates Germany, in third position, with a 10% reduction in its projects. Full employment weighs in this country, like an industry that is struggling to decarbonize with industrial chains in the automotive or pharmaceutical sectors not very open”,
highlighted Philippe VailhenEY associate lawyer and EY Regional Director West, commenting on this new barometer. Great Britain, in second place, sees the same volume of projects with just +2%.
Brexit still raises questions, even if the head offices and the financial industry continue to set up there, like the industry, period, in Manchester for example.
But not in terms of jobs
There, the shoe pinches always. France counts only 38 jobs per implementation project against 45 in Germany or 79 in the United Kingdom. France is strengthening companies already established but has difficulty exporting new projects, such as head offices or research and development centres. We really have to succeed in ensuring that projects in France provide more jobs. Our talent resources are recognized, particularly at the technological level. We still have to let it be known.
A European relocation
Effect of the pandemic, European sovereignty is gaining ground. Industrial (+18%) and logistics (+37%) projects are returning to Europe at a time when globalization is going astray.
An alignment of planets which gives reason to projects with more controlled logistics, a more respectful environmental impact and a more controlled geostrategic risk. The countries of the South, Spain, Portugal and Turkey, also take full advantage of this effect.
Remote work that weighs on the tertiary sector
Moving around is no longer as necessary, especially in service companies. Digital companies or large tertiary platforms have drastically curbed their foreign investment. It is up to us to play on this situation to build our own champions in this sector, as with Doctolib”,
comments Philipe Vailhen.
The challenge of regional capitals
The barometer highlights the top fifteen cities in Europe. If Paris slips into second place, there is not another French city where other countries slip two or three. Again, there is real work to be done. The first French after Paris is Bordeaux. However, it is not the most entrepreneurial region facing Lyon, which is losing ground, or Lille like the West. The maritime facade of Bordeaux must weigh abroad.
Nantes and Rennes only come in twelfth and thirteenth positions. Here again, France must work to make its local resources better known.
The advantage of cities with less than 50,000 inhabitants
New interesting phenomenon of this barometer, in 2021, nearly one out of two industrial projects was located in an area of less than 50,000 inhabitants. And the establishments and extensions on these sites are 72% industrial projects. A real opportunity for France, which ticks all the boxes in this new trend.
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. © West-France
So France locomotive or wagon?
Thus, if France still remains in pole position, there is still a long way to go to consolidate it. It must be a locomotive, not a wagon. And for that, it must meet the three priorities sought by foreign investors: simplicity, stability and seduction.
, states Philippe Vailhen. The latest tax reforms in this area, over the past five years, have certainly brought more simplicity, a certain stability too, but the attractive side is still struggling. The latter will also go through a reduction production taxes. Still far from clear reading for all foreign investors.
Not to mention that the war in Ukraine nevertheless constitutes a new shock threatening the resumption of foreign investment in Europe. 79% of companies surveyed before March 1 planned to invest in Europe next year. A proportion that drops to 48% for those questioned after March 1.
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