Finance: France, European leader in attractiveness - But how?

At first glance, France appears to be playing in a league of its own in the field of finance in Europe, positioning itself for the fifth consecutive year as the favorite playground for foreign investors. However, behind these impressive figures lies a more nuanced reality, especially in terms of job creation. So, how can France reconcile these two sides of its economic coin?

A Deceptive Shine?

France shines like a star in the European sky, attracting the admiring glances of international investors. For the fifth consecutive year, it climbs to the top rung of the attractiveness podium, surpassing giants such as Germany and the United Kingdom.

With 1,194 investment projects in 2022, reflecting a significant increase compared to its competitors, France demonstrates remarkable vitality. However, if money is flowing in, what are the actual repercussions on employment? The answer is tinged with a hint of irony, as despite these promising figures, each project generates a relatively modest number of positions. A gap that prompts questions about the underlying causes of this economic enigma.

Indeed, the French soil gleams under the spotlights of international capital in finance, but it seems that this light struggles to reach the local job market. Imagine: in Spain, each investment project creates about 300 jobs, compared to only 35 in France. Isn’t this a sign that high labor costs and a sometimes tense social climate cast more shadow than light? These obstacles appear to restrain the momentum that could transform investments into tangible job opportunities for the average citizen.

Reindustrialization, a Glimmer of Hope for France?

Despite the challenges, France is not short of good news. With 530 new factories or expansions in a year, reindustrialization is underway. Whether it’s in pharmaceuticals or the production of spare parts, traditional and technological sectors are coming back to life.

However, the number of jobs created by these projects remains modest. Is this a reflection of a preference for automation or a cautious approach by companies due to the rigidities of the French labor market?

Bruno Le Maire does not hide his enthusiasm: France is shining, and this is no accident. Political stability and a favorable economic policy are key factors cited by investors. The future looks promising with projects to simplify administrative procedures and reforms, including those of unemployment insurance, to make the labor market more flexible and attractive. In the meantime, Paypal expands its cryptocurrency catalog.