France Named Europe's Economic Attractiveness Champion for Fifth Year in a Row

Paris, May 2, 2024 – EY has published its 2024 France Attractiveness Survey, which annually tracks foreign investment projects across Europe and evaluates perceptions of France among economic decision-makers. The survey assesses both actual and perceived economic attractiveness, comparing major European countries.

Despite a 23% drop in investment decisions across the European Union, according to UNCTAD, France has maintained its top position in the European attractiveness rankings for the fifth consecutive year, with 1,194 projects identified. The United Kingdom and Germany followed with 985 and 733 projects, respectively. In 2023, France accounted for 21% of foreign investments in Europe, up from 18.7% in 2019, indicating a growing share of foreign direct investments.

The substantial number of project expansions in France (64%) highlights renewed investor confidence, especially in the industrial sector. With 530 industrial projects recorded, France has been the most attractive European country for industrial investment for over 20 years. It also leads Europe in the creation and expansion of factories and in job generation at manufacturing sites.

France's ambitious industrial strategy, bolstered by the Green Industry Act, significant investments in skills, and the development of real sectors, makes it a competitive and attractive destination for industrial projects.

In 2023, France was recognized as the European leader in innovation, with 123 R&D projects. The "France 2030" plan, with its clear and ambitious vision, provides a significant comparative advantage, particularly in artificial intelligence, where France led with 17 projects, ahead of the United Kingdom (12 projects) and Germany (9 projects).

Five French regions (Ile de France, Auvergne-Rhône-Alpes, Grand Est, Hauts de France, and Occitanie) rank among the fifteen most attractive European regions for foreign investment projects. This shows that France's appeal extends beyond major cities, with nearly half of the 2023 foreign investment projects targeting rural areas or medium-sized towns. Foreign investors are contributing to regional revitalization by creating jobs and adding value.

The perception survey accompanying the EY report shows that 76% of executives are more confident in France's ability to maintain or increase its attractiveness, up from 53% in 2023. This significant improvement reflects a positive shift in global perception, likely to boost further foreign investment in France.

Franck Riester, Minister Delegate for Foreign Trade, Economic Attractiveness, French-Speaking Communities, and French Nationals Abroad, stated, "I am very pleased to see France recognized for the fifth consecutive year as the most attractive country in Europe for foreign investment. This achievement results from reforms initiated since 2017 by the President of the French Republic, benefiting growth and employment in our regions. We continue to pursue reforms for fiscal stability, talent excellence, research and innovation support, and administrative simplification."

Laurent Saint-Martin, CEO of Business France, added, "France is making significant strides in re-industrialization and economic modernization, which investors clearly recognize. These results align with Business France's foreign investment data, demonstrating the success of our economic activity promotion reforms. In 2023, 58% of projects received tailor-made support from Business France, representing 67% of jobs created or maintained in France."

Pascal Cagni, Chairman of Business France and Ambassador for International Investment, concluded, "We are proud to enhance France's attractiveness as a hub of innovation. Foreign investors value our talent, infrastructure, and innovative ecosystem, especially in AI. Through tailored support, we help them realize their projects and contribute to sustainable and responsible growth."