It’s a “special” edition produced in the wake of the political mess France has been in over the last few months. Used to producing an annual barometer of France’s attractiveness, the powerful financial auditing firm EY has decided to produce its own. a second one this November. The aim? To assess the consequences of this unstable political interlude on France’s attractiveness. We won’t spoil the whole study for you, but it’s clear that the dissolution of the National Assembly has clearly not convinced investors to come here. Choose France… Or not.
The name EY may not ring a bell. Formerly known as Ernst & Young et associés, this firm is one of the most powerful in the world. With nearly 400,000 employees, EY is expected to post sales of almost $50 billion by 2023, despite its size. the scandals that regularly tarnish its reputation. In other words, they know a thing or two about business. And according to them, the political instability that followed the dissolution of the National Assembly by Emmanuel Macron has taken its toll on our attractiveness. Of the 200 executives surveyed, half felt that our country’s attractiveness had deteriorated since June. The same proportion would have reduced their investment projects, even though “no foreign company has (for the time being) cancelled its investments in France “.
Aside from the dissolution of the Assemblée, it was above all the legislative and regulatory uncertainties that scared investors, particularly when it came to drawing up long-term business plans. The slowdown in reforms, particularly in terms of administrative simplification, also weighed heavily. It is worth noting, however, that only 16% of the managers questioned cited “the risk of social unrest” as an obstacle to their development.
A flight to the UK?
According to EY, the executives questioned are “still counting on France”, but prefer to focus on innovation and services rather than on setting up head offices or factories. But when? Over 80% of business leaders surveyed say they have postponed their investment decisions until 2025 or later.
Europe’s foreign investment champion could lose its title, however, to Great Britain. Despite the Brexit, the British kingdom now seems to be favored by executives.