The French political and legislative uncertainty derived from the dissolution of the National Assembly on June 9 is sowing doubts among those seeking to locate their capital in Europe. After five prosperous years, during which France was perceived as the most attractive country on the Old Continent to establish headquarters, research centers or factories, the tide appears to be turning, fueled by the feeling that Europe must do more to resist the Americans. protectionism and Chinese ambitions. This is the observation made by the company EY, which has been conducting a survey among 200 executives of foreign-owned companies for twenty years.
According to a “special edition” of this panel carried out in October, for half of these decision-makers, the attractiveness of France has deteriorated since June, and the same proportion (49%) have already reduced their investment projects in France, including 12 % “significantly”. “We are coming out of a long period of constancy [sur les plans économique et fiscal]explains Marc Lhermitte, partner at EY and co-author of the study. This barometer reflects a new instability. »
Leaders are wondering about future legislative or regulatory options, worried about slowing reforms and administrative simplification, while alarmed by debt and budget deficits. However, it should be noted that these issues have not yet led to the cancellation of investment projects, but rather a wait-and-see attitude. Thus, almost six out of ten managers affirm that their projects are postponed, “probably » until 2025.
“Fatigue”
These delays in investment decisions could weigh on economic activity and reindustrialization: in 2023, foreign capital companies were the origin of 400 industrial investments, of which 40% in medium-sized cities. They contribute to 16% of the gross domestic product, employ 2.2 million people, or 13% of total employment, and produce 35% of industrial exports, recalls EY.
France is not the only one that is being questioned. “These foreign companies consider the situation in Europe as a whole to be quite worrying. », emphasizes Lhermitte. “We are seeing fatigue with the economic and commercial dispersion of European countries. » Germany, which is experiencing an economic and political crisis, is also experiencing some disaffection.
You have 24.95% of this article left to read. The rest is reserved for subscribers.
