The Choose France summit held at the Chateau de Versailles has become a well-established protocol for showcasing France’s attractiveness to foreign investors. Under Emmanuel Macron’s leadership, the summit has evolved into an effective communication tool for announcing investment projects and attracting international investors. The 2024 summit saw a record-breaking 56 investment announcements totaling 15 billion euros, indicating a growing interest in France as a business destination among global investors.
France has struggled with promoting its strengths in the past, but events like the Versailles summit play a crucial role in changing that perception. By demonstrating their appreciation for investors willing to bet on France, the country is gradually shedding its reputation as not being business-friendly. Efforts to highlight France’s economic competitiveness have yielded positive results, with the EY annual barometer ranking France as the top European destination for foreign investment for five consecutive years, showcasing a total of 46 billion euros in investments across 178 projects since the launch of Choose France in 2018.
Despite the positive announcements, the impact of these investments needs to be nuanced. Some projects mentioned at the summit may have proceeded regardless of the event, and many involve expansions of existing industrial sites rather than new large-scale projects. France has struggled to attract mega-projects worth billions of euros, such as automotive or microprocessor factories, with Microsoft’s 4 billion euro investment in data centers being a notable exception. However, foreign investments in France tend to create fewer jobs compared to other countries, with the UK attracting similar investment amounts but creating double the number of jobs.
While the Versailles summit attracts attention, there is still a long road ahead for France’s economic recovery. Progress has been made in sectors like finance, where Paris has benefitted from Brexit-related relocations. However, the country still faces challenges in transitioning to decarbonized energy, securing skilled labor, and accessing capital for research and investment, all key factors for reviving France’s industrial prowess. While the investments announced at Versailles are promising, they alone will not be sufficient to strengthen France’s economic fabric and restore its industrial power.
Overall, the Choose France summit serves as a platform for showcasing the country’s investment potential and attracting international interest in its economic opportunities. Despite the positive developments and record-breaking announcements, France still faces challenges in creating substantial job opportunities, attracting large-scale investments, and addressing long-standing industrial decline. The efforts to promote France as an attractive business destination are yielding results, but sustained focus on addressing key economic challenges will be essential for the country’s long-term revitalization and economic growth.
