This year, the barometer of France’s attractiveness, published on May 2 by the EY (formerly Ernst & Young) firm, ranks France as the most attractive country in Europe. Some economic commentators praise the merits of “France, Inc.” while government officials defend their economic policies such as tax cuts on dividends, controversial pension reforms, and business tax breaks. However, a closer look at the numbers reveals a different story than the initial celebration.
While France has 1,194 foreign investment projects in 2023, compared to 985 in the UK and 733 in Germany, the real measure of attractiveness should be the number of jobs created. France’s foreign investment projects are associated with 39,773 job creations, placing the country third in Europe behind the UK and Spain. Adjusting for country size, France falls to eighth place behind Portugal, Serbia, Ireland, Hungary, Spain, the UK, and Greece, indicating that there is no reason for excessive pride in this ranking.
The 39,773 jobs created in 2023 represent only 0.13% of the total active population in France. While these jobs are beneficial and will help the regions that benefit from them, the impact is relatively small compared to the hype surrounding them. When compared to the increase of 142,000 new unemployed individuals in 2023, which is three and a half times more than the new jobs created by foreign investments, the disparity becomes even more evident.
An important aspect to consider is the ideological proximity of the data used to measure France’s economic performance. The government and media may focus on the number of foreign investment projects, but the real measure of success should be the quality and quantity of jobs created and their impact on reducing unemployment. By putting the numbers into perspective and considering the actual impact on the economy and society, a more accurate assessment can be made of France’s economic situation.
The comparison between France’s foreign investment projects and other European countries reveals a mixed picture of France’s attractiveness to foreign investors. While the numbers may suggest positive growth, the actual impact on the economy and employment is limited. A more nuanced analysis is needed to understand the true implications of these investments and to address the underlying issues contributing to France’s economic challenges.
In conclusion, while France may rank high in terms of foreign investment projects, the actual impact on job creation and economic growth is relatively modest. A more thorough examination of the data and a critical assessment of the government’s economic policies are necessary to address the underlying challenges facing the French economy. By looking beyond the surface level statistics and considering the broader implications, a more accurate picture of France’s economic attractiveness can be painted.
