Foreign bosses starting to query investing company cash in France, says report
International tycoons are having second thoughts about investing in France mainly due to the country's political instability, says a new survey of 200 managers of foreign-owned companies.
After several years in which France became the number one European destination for new headquarters, research centres and factories, the tide, according to the findings of the consultancy firm EY, appears to be turning.
A barometer of France's attractiveness – carried out between 3 and 21 October – found that 118 of the bosses said the fractious political landscape following last summer's snap parliamentary elections was making it difficult for them to build a business plan.
Nearly half of them feared the political skirmishing would lead to a slowdown in reforms to cut red tape and they were also worried about whether it would cost more to employ people.
"Executives are still counting on France, particularly for investment in innovation and services," said the report. "But they are more reserved about locating factories and headquarters in France."
Importance
In France, according to the government statistics agency Insee, 17,500 companies are under foreign control and employ 2.2 million people, some 13 percent of the salaried workforce.
"Foreign-owned companies are one of the major driving forces of our economy and that of our regions," the report says.
The bosses say they want the government to maintain the drive to cut business tax and reduce the bureaucracy involved in setting up a business.
Read more on RFI English
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