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One in two foreign investors consider that the attractiveness of has deteriorated since the dissolution of the National Assembly

Nearly half of these foreign bosses say they have reduced or postponed their investments in after the dissolution.

Published on 18/11/2024 22:00

Updated on 19/11/2024 06:41

Reading time: 1min

According to the EY attractiveness barometer, the political situation will have an impact on investments in our country this year. (XOSE BOUZAS / HANS LUCAS / AFP)

Half of foreign investors consider that France's attractiveness has deteriorated since the dissolution of the National Assembly. This is what the special edition of the EY attractiveness barometer indicates. According to this study, the political situation will have an impact on investments in our country this year.

Nearly half of these foreign bosses say they have reduced or postponed their investments in France after the dissolution, even if at this stage, none of them have canceled any projects. Among the reasons they give: legislative and regulatory uncertainties, a slowdown in the reform agenda, concerns about the economic and budgetary situation and a possible increase in labor costs.

Those who could benefit are the British. For 42% of these leaders, in six months, the United Kingdom has become more attractive compared to France. But these investors are still betting on France: almost half of them plan to set up or expand factories there within three years.

They identify five conditions for maintaining their projects: preserving competitiveness – particularly fiscal, reducing public spending, reindustrializing, supporting decarbonization and innovation, and strengthening support for SMEs in digital transformation and training.

Methodology: Survey conducted last October among 200 “international decision-makers” involved in 25 countries.

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