A crisis later, the cards are barely reshuffled. After the stall due to the Covid-19 pandemic, which has not yet been fully caught up, foreign investors returned to Europe in 2021, with 5,877 installation or extension projects under way, an increase of 5% compared to the year 2020.
Of this total, 1,222 projects landed in France, which not only consolidates its first place on the Old Continent for the third year in a row, but also benefits from a stronger rebound than its neighbors (24%), according to the EY cabinet barometer and published on Tuesday 31 May. France is widening the gap with the United Kingdom, which remains in second place, and with Germany, in third place, despite a 10% drop in the number of projects received.
France is taking advantage of the weaknesses of its two rivals: Brexit affects Britain’s attractiveness in terms of industrial projects, “and the postponement of these projects is done first and foremost for the benefit of France”, says Marc Lhermitte, partner at EY. As for Germany, it suffers paradoxically from its low unemployment rate, which encourages investors to turn to the French employment market, and in particular to territories with fewer than 50,000 inhabitants, which are often deindustrialized and where there are an available workforce.
“Significant contribution to reindustrialisation”
However, this good result deserves to be qualified. « France has come a long way in terms of attractiveness over the past five to seven years, but there are still holes in the racket », tempers Mr. Lhermitte. As in previous years, the country attracts investment projects that are smaller than its neighbors and less job-creating. Thus, on average, each project leads to the creation of 38 jobs in France, compared to 45 in Germany or 68 in the United Kingdom.
The reconfiguration of value chains linked to the health crisis has led to a sharp increase in industrial and logistics projects
Similarly, there are fewer new projects, but more extensions of existing sites, which represent approximately two-thirds of investments. Finally, for tax reasons in particular, France is struggling to attract head offices, which rather elect domicile in London than in Paris.
Notwithstanding these reservations, foreign investment brings ” a significant contribution to the reindustrialization of France “, welcomes Christophe Lecourtier, CEO of Business France. The reconfiguration of value chains linked to the health crisis has led to a sharp increase in industrial and logistics projects, up 18% and 37% respectively compared to their 2019 level. At the same time, the software and technology, which remains first in terms of the number of projects, is slowing down.
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