French President Emmanuel Macron gives a speech during a visit to the German chemical company BASF. Photo: Benoit Tessier/POOL REUTERS/AP/dpa
Companies from Germany remain the most important foreign investors in France after US companies. The reasons are the attractiveness of the market, qualified workers and simply the proximity.
Paris – France remained the European country that attracted the most business investment from abroad last year. After the USA, Germany remains the second most important and largest European investor in the neighboring country, as the foreign trade representative of the Paris Ministry of Economic Affairs, Business France, announced. UK companies rank third in terms of foreign investment in France.
“The trend continues. As in 2022, Germany is by far the largest European investor in France,” said the managing director of the Franco-German Chamber of Commerce and Industry, Patrick Brandmaier, to the German Press Agency at the weekend. Germany is France’s largest trading partner. Investment and trade flows went hand in hand. “This is due to the attractiveness of the French market, its size, its skilled workforce and its proximity.”
The crisis in the Red Sea has shown the benefits of investing in nearby countries. Many company decisions were also based on the desire to reduce the carbon footprint.
Car manufacturing is strongly represented
“We see a very high level of investment in all sectors,” said the head of the Chamber of Commerce. “Sectors such as automotive remain strong, reflected in investments in ACC batteries with Total Energies, Saft and Mercedes-Benz.” German companies are also investing heavily in the energy sector, as evidenced by the partnership between Siemens Energy and Air Liquide. “The chemical sector is also well represented: BASF has invested 300 million euros in its global nylon center in Chalampé (Haut-Rhin) by 2022, while Bayer has invested in seeds.”
German investments in France are not focused on the border region or Paris, said Brandmaier. “If you look at the settlements and investments, you see that German companies are investing throughout the country.”
Confirmation of reform course
The French government attributes the continued interest from foreign companies to its reform efforts. “We continue to implement structural reforms to create well-paid jobs across the board, facilitate the activities of investors and attract projects in the areas of research, production, digitalization and decarbonization,” said Economy Minister Bruno Le Maire.
The US Chamber of Commerce in France (AmCham) also praised the economic situation in France. “Despite a year 2023 marked by extreme geopolitical tensions, an energy crisis with high inflation, raw material shortages and a tight labor market, the French economy is once again proving its resilience and dynamism and remains a leader in Europe’s attractiveness,” it said a few days ago . From the perspective of US investors, however, France continues to suffer from high labor costs, a problematic social climate, excessive bureaucracy and high tax burdens.
2024-03-03 05:21:15
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