France climbs economic attractiveness ranking
Attractiveness of France – Reply by Mme Agnès Pannier-Runacher, Minister of State attached to the Minister of the Economy and Finance, to a question in the National Assembly (excerpts)
Paris, 4 June 2019
You’re right to emphasize the good results for our economy underlined by EY (Ernst & Young). They follow those announced by A.T. Kearney two weeks ago, which ranked France the world’s fifth most attractive country economically – up two places from the previous year.
In 2018 we were the second most attractive country [in Europe], ahead of Germany, with more than 1,000 investment projects, while Germany and the UK receded. Yes, we’re the leading destination for industrial investments, which are on the rise.
Yes, we currently host more R&D projects than Germany and the UK put together. There’s no getting away from the facts.
This success isn’t accidental; it’s the result of the reforms conducted by the government to increase competitiveness. They’ve now been translated into these good results.
I’m thinking about the transformation of the CICE – competitiveness and employment tax credit – into reduced contributions, about the reform of capital taxation to allow more investments in businesses, and about the labour decrees to reform the labour market. I want to point out that the EY study indicates that one of the obstacles to French attractiveness lay in flexibility problems in the labour market. I’m also thinking about the massive investment in skills.
The OECD puts the structural GDP growth made possible thanks to these reforms at 3.2%. So we’ll continue them, we’re committed to them, along with everyone who wants to support us. (…)
In the framework of the productivity pact for 2025 we’ll deal with these issues, including facilitating administrative formalities, because this is one of the points EY considers to be an obstacle to our attractiveness./.