Foreign investment: France remains at the top of the most attractive countries in Europe

France retains its throne. For the sixth consecutive year, France remains the most attractive country in Europe for foreign companies, as it is the country where the largest number of international investments were made in 2024, ahead of the United Kingdom and Germany, according to the Ernest & Young 2025 attractiveness barometer .

The number of foreign establishment and expansion projects in France fell by 14% in 2024. However, its two main competitors, the United Kingdom and Germany, are following the same trend. Job creation generated by these projects fell sharply by 27% between 2023 and 2024.

The 200 executives surveyed by the financial audit firm Ernest & Young identified France as having many advantages. They cited market size, skills, infrastructure, and quality of life in particular.

Several sectors are in demand. In the energy sector, 70 foreign companies have chosen France for 2024, and some of them are contributing to France's energy transition. In the field of artificial intelligence, even before the announcements unveiled at the AI ​​Summit held in Paris in February, €109 billion is expected to flow into this promising sector. France is positioning itself as a major magnet in Europe for foreign investment.

France also remains a central place in the growth plans of international agri-food companies, despite its complex relationships with distribution.

In the eyes of foreign investors, however, France's industrial attractiveness suffers from labor costs, but also from a lack of land, energy competitiveness, robotization, innovation, and agility. France's weak growth and declining consumer spending are also weaknesses on the French side.

Some traditional industries, such as chemicals and automotive, are attracting fewer new entrants. In the pharmaceutical industry, after a period of strong investment, the number of projects has returned to pre-Covid levels.

France remains the most attractive country, but foreign investment in Europe has declined overall for the second consecutive year. It has even reached its lowest level in nine years. 5,383 projects have been announced in Europe for 2024, a 5% decrease compared to 2023.

The number of jobs created by foreign investment in Europe has fallen by 16%. This is a far cry from the 20% increase in the United States. Donald Trump's promises have been effective across the Atlantic and are bound to have an impact on what's happening in Europe.

American investors are much less attracted to the European market. The number of projects financed by Americans in Europe has fallen by 11% compared to 2023, and by as much as 46% compared to 2021.