The attractiveness of France would have been weighed down by political instability

This is a “special” edition produced following the great political mess that France has been through in recent months. Accustomed to an annual barometer of France's attractiveness, the powerful financial audit firm EY has decided to produce a second one this November. The objective? Evaluate the consequences of this unstable political parenthesis on the attractiveness of France. We are not going to spoil the entire study for you, but it is clear that the dissolution of the National Assembly clearly did not convince investors to come to us. Choose France… Or not.

The name EY may not mean anything to you. Formerly called Ernst & Young and Associates, this firm is nevertheless one of the most powerful in the world. With its nearly 400,000 employees, EY had a turnover of nearly $50 billion in 2023, despite the scandals that regularly tarnish it. Needless to say, they know a little about business. And according to them, the political instability that occurred after the dissolution of the National Assembly by Emmanuel Macron has seriously undermined our attractiveness. Among the 200 leaders questioned, half believe that the attractiveness of our country has deteriorated since June. The same proportion would have reduced its investment projects, even if “no foreign company has (for the moment) canceled its investments in France”.

Beyond just the dissolution of the Assembly, it is above all the legislative and regulatory uncertainties which have frightened investors, particularly in the establishment of a long-term business plan. The slowdown in reforms, particularly on administrative simplification, also had its impact. It should be noted, however, that only 16% of the managers interviewed mentioned the “risk of social unrest” as an obstacle to their development.

A flight to Great Britain?

The managers interviewed “still count on France”, according to EY, but prefer to focus on innovation and services than on the establishment of head offices or factories. But when? More than 80% of business leaders surveyed say they have postponed their investment decisions until 2025, or later.

The European champion of foreign investments could, however, lose her title to Great Britain. Despite Brexit, the British kingdom now seems to be favored by leaders.