Nearly half of foreign investors in France (49%) say they have reduced or postponed their investment plans following the dissolution, even if no company has canceled their plans, according to an EY study published Monday.
The 200 decision-makers surveyed in 25 countries in October for this special edition of the EY Attractiveness Barometer seem particularly worried (59%) about current legislative and regulatory uncertainties and the difficulty of building reliable “business plans”.
They also fear (47%) the slowdown of reforms and 40% the questioning of public decisions in key sectors. Between 20 and 30% also cite concerns about the country's budgetary and economic situation and the cost of labor.
The EY firm has ranked France five times in a row in recent years as the preferred European country for foreign investors. Now, 42% of the managers surveyed believe that the attractiveness of the United Kingdom has improved compared to that of France, despite increased tax pressure.
On the other hand, they find Germany's attractiveness worrying.
Concerning investments not made in 2024, 84% of business leaders surveyed say they have postponed their investment decisions until 2025, at least.
More than 60% plan to develop R&D or service activities in France by 2027. But only 49% plan to set up or expand factories there within three years. And only 15% develop decision-making centers there.
These business leaders, however, call for France to capitalize on its “differentiating assets”, such as the wealth of skills (37%), the capacity for innovation and research (29%) and the reliability of infrastructure (25% ).
For Marc Lhermitte, EY partner, “despite the impact of the economic and political situation, international leaders are still counting on France”, since “faced with Germany and the United Kingdom, they have reinvested there thanks to the efforts of competitiveness and stability undertaken for ten years”.
They now expect “an optimization of public spending, continued support for industry, decarbonization and R&D”, analyzes Mr. Lhermitte.
“To remain attractive, financing of businesses, innovation and decarbonization must be inspired by the recommendations of the Draghi report” on European competitiveness, recommends the president of EY France Jean-Roch Varon.
He suggests “emphasizing our energy advantage and prioritizing support for SMEs and ETIs” in their various transformations.
