France has misplaced its attractiveness for worldwide traders | EUROtoday

The French political and legislative uncertainty ensuing from the dissolution of the National Assembly on June 9 is sowing doubt amongst these searching for to position their capital in Europe. After 5 affluent years, throughout which France was perceived as essentially the most enticing nation within the Old Continent for establishing head places of work, analysis facilities or factories, the tide appears to be turning, fueled by the sensation that Europe should do extra to withstand. American protectionism and Chinese ambitions. This is the statement drawn up by the EY agency, which has been conducting a survey of 200 managers of corporations with overseas capital for twenty years.

According to a “special edition” of this panel produced in October, for half of those decision-makers, the attractiveness of France has deteriorated since June, and the identical proportion (49%) has already lowered their initiatives funding in France, together with 12% in a “significant” method. “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 choices, are worried about the slowdown in reforms and administrative simplification, while being alarmed by the debt and budget deficit. However, it should be noted that these questions have not yet resulted in the cancellation of investment projects, but rather in a wait-and-see attitude. Thus, nearly six out of ten managers say that their projects are postponed, “at best » to 2025.

“Wearyness”

These delays in funding choices may weigh on financial exercise and reindustrialization: in 2023, corporations with overseas capital have been on the origin of 400 industrial investments, together with 40% in medium-sized cities. They contribute to 16% of gross home product, make use of 2.2 million individuals, or 13% of complete employment, and produce 35% of business exports, remembers EY.

France shouldn’t be alone in being the topic of questions. “These overseas corporations think about the scenario in Europe as a complete fairly worrying », underlines Mr. Lhermitte. “We are seeing weariness with the financial and business dispersion of European nations. » Germany, which goes by an financial and political disaster, can also be experiencing a sure disaffection.

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