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France is becoming attractive for German investors

Germany is a major economic partner of France and is the second largest investor in France with more than 4,500 established companies and 312,000 jobs created. According to the study German companies in France: economic situation, perceptions and perspectives 2018-2022 conducted by the Chamber of Commerce and Industry in collaboration with EY*, France is becoming more and more attractive for german investors.

Innovation is the key point for economic investment

France is now gaining attractiveness thanks to a change of political and economic environment, according to the business leaders interviewed during this study. The trust of german entrepreneurs in the french economy to develop their businesses is constantly increasing, especially the capacity of innovation in France in the AI (Artificial Intelligence).

"France's new attractiveness is based on its reforms, its great capacity for innovation and its desire to place digitization and artificial intelligence at the center of economic development.” Says Jörn Bousselmi, General Director of the Franco-German Chamber of Commerce and Industry.

France has indeed made significant technological progresses in this area in recent years, largely encouraged by the government. And these innovations will continue to grow up. In March 2018, President Emmanuel Macron announced the implementation of the "artificial intelligence plan" until 2022 with a budget of 1.5 billion euros to make France a world expert in this area.

The economic attractivity of France in a few figures

The figures in this study have the same conclusion concerning the willingness of German entrepreneurs to set up a business in France. Indeed, 90% of them perceive the economic situation of France as satisfactory. In addition, 78% of German companies say they are satisfied with the results of their activity in France against 55% in 2016.

The French-German collaboration strengthen the European Union

If French and Germans are working proudly hand in hand today, it’s mostly because they feel European and are proud of their evolution.
As Serge Guérémy, partner EY, points out : "The new image conveyed by France is a real chance for a renewal of Europe. In opposition to uncertainties arising from an unstable international context, success will only be achieved with the help of Europe and more particularly the enrichment of the Franco-German partnership "

New goals coming for the french economy

Even if German investors are optimistic, France still has some efforts to make to seduce them completely. They note for example a lack of technicians and adaptations need to be done in terms of training. The government will also have to improve the flexibility of the labor market and the simplification of labor law, which is still considered too restrictive for German entrepreneurs. Future prospects remain favorable as these recommendations are heard by Emmanuel Macron who has already registered the reform of the Labor Code in the Official Journal on 22 September.

* EY: Ernst & Young, Audit and Consulting Firm

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