5. Attractiveness criteria
30
2.1 Market size and strength 32
2.2 Education and human capital 38
2.3 Research and innovation 44
2.4 Infrastructures 52
2.5 Administrative and regulatory 60
environment
2.6 Financial environment 68
2.7 Costs and taxation 74
2.8 Quality of life 84
2.9 Green growth 92
2.10 The perceptions of foreign investors 98
Chapter
02
5
FRANCE ATTRACTIVENESS SCOREBOARD. CONTENTS
6. PASCAL CAGNI
Chairman of Business France,
Ambassador for International
Investment
Greatlyimproving
comparative
attractiveness
6
7. here does France stand, as
an economy and attractive
business destination,
compared with its main rivals? What
are its strengths and weaknesses? And
how are these changing? The answers
to these questions can be found in
Business France’s Attractiveness
Scoreboard, the aim of which is to
compare France’s performances with
those of 13 other major OECD countries.
In light of these results, the challenge
surrounding the French economy’s
attractiveness, is two-fold: firstly, we
must help maintain Europe’s ranking
when faced with competition from the
world’s other developed regions; and
secondly, France must serve as an
example of economic greatness and
political stability within the European
Union and the euro zone.
France’s strengths and business drive
are logically reflected in an increase of
our attractiveness. France is a country
that attracts talent and investors, a
country focused on excellence.
Against a backdrop of rising populism,
protectionism and declining global
FDI flows, France has emerged as a
leading destination for foreign capital
and talent. In 2017, Business France
recorded a strong increase in incoming
FDI inflows (up 39%) amounting to
€44.2 billion, as well as job-creating
foreign investment (up 16%). France
continues to be Europe’s leading
recipient of industrial investments.
Moreover, the excellence and reputation
of our higher education system, not to
mention the draw of the French
language, enable us to attract foreign
students. With more than 240,000
international students in 2016, France
remains the fourth most popular
destination for students after the
United States, the United Kingdom
and Australia.
France’s economic image is improving,
and so is its perceived attractiveness,
with the measures taken in recent years
by the authorities to enhance the
country’s attractiveness starting to
bring positive results. Foreign investor
satisfaction has increased significantly,
whether measured by AmCham-Bain,
EY or Kantar Public. Surveys analyzing
France’s attractiveness cite the size of
the internal market, the quality of the
country’s communication and transport
infrastructures, workforce skills
and training, innovation and R&D,
and overall productivity among the
country’s strengths.
Comparative attractiveness is
growing sharply. France is now the
second most attractive European
country after Germany, and ahead of
the United Kingdom. German, Indian
and Chinese companies all consider
France the leading destination in
Europe for foreign investment. With
regard to UK investment, more than
one-third of British companies
perceive France as Europe’s most
attractive investment destination,
up seven percentage points.
France’s structural strengths, as
highlighted in the latest edition of the
Attractiveness Scoreboard, along
with the country’s entrepreneurial
and creative momentum, are still too
often overlooked by the world’s
largest economic key players. Net
enterprise creation is well above the
European average, while France has
become a prime location for launching
startups, thanks to simplified business
formation procedures and a dense
nationwide network of incubators and
accelerators. What’s more, the world’s
largest startup campus, Station F,
opened last summer in Paris, while the
French tech ecosystem is now the focus
of major international recognition.
Today, our country’s strengths, as
confirmed by the positive results it has
confirmed for foreign direct investment
and entrepreneurial drive, are looked
upon more favorably by foreign
investors and opinion makers. We
must continue to change our country’s
perception abroad for the better, and
to tirelessly promote the strengths of
our economy.
This is what Business France and I,
in my role as Ambassador for
International Investment, are
committed to doing, supported by the
excellent French diplomatic network
and many French people abroad who
can use this report to challenge those
received ideas and help to further
transform the image of France.
7
FRANCE ATTRACTIVENESS SCOREBOARD. OVERVIEW
8. gainst a background of much greater
mobility of production factors, particularly
capital, the attractiveness of countries
and economies is becoming increasingly
important. Respective governments are focusing
their efforts
on creating an environment conducive to maintaining
or setting up businesses and attracting foreign talent.
Country attractiveness is a relative concept and
companies are finding more and more ways to
expand abroad. Some companies favor the quality
of transport and communication infrastructure,
or an environment more conducive to technological
innovation (qualified personnel, tax benefits,
innovation activities, etc.); while some are more
interested in the skilled labor force that is available,
strong domestic demand and high market potential;
and others prefer lower production costs or access
to specific natural resources.
There are no absolute criteria for defining a threshold
above which a country could be considered to be
attractive, which is why Business France has been
conducting a comparative analysis of the
attractiveness of the French economy for the last
nine years by comparing the performances of France
with those of 13 other major OECD countries across
123 indicators.
Business France teams have focused on key
investment attractiveness criteria and have presented
a clear overview of core data, shining light through
French windows onto an obscure mass of statistics,
providing the keys to understanding the advances
and the impact of reforms on companies.
Three main lessons have emerged from the ninth
edition of this publication.
1. France continues to enjoy and consolidate a
number of outstanding structural advantages.
French infrastructure remains unrivalled, underpinned
by high levels of state investment that in 2016
exceeded those in the United Kingdom and Germany.
Examples include some of the cheapest and lowest-
carbon electricity in Europe, and the prowess of
Paris-Charles de Gaulle airport, ranked first for cargo
and second by passenger numbers on the continent.
2. The financial ecosystem is improving thanks
to an increasingly modern administrative and
regulatory environment. According to the United
Nations E-Government Survey 2018, France is ranked
ninth in the world for e-government (fifth in Europe),
and fourth in our sample. France performs particularly
well in terms of the quality and accessibility of online
services, for which it is ranked fourth in the world and
second among our sample.
3. France is a nation that offers great access to
corporate finance. In the first three quarters of 2018,
France was ranked third in the sample in terms of
amounts raised (United Kingdom €5.1 billion,
Germany €3.1 billion, France €2.8 billion), and second
for the number of transactions (United Kingdom 588,
France 431, Sweden 246, Germany 216). Furthermore,
cash lending to SMEs and micro-enterprises is rising,
while corporate lending in France has on the whole
remained buoyant. According to the Banque de
France’s quarterly corporate bank lending survey for
the second quarter of 2018, bank lending to SMEs
and micro-enterprises has remained strong (with
87% of SMEs and more than 73% of micro-enterprises
obtaining the amount they sought), which is
the highest level recorded since the end of 2014.
However, a number of observers insist upon the
efforts required to improve labor costs and the tax
burden on businesses. The reforms carried out over
the past year – including an overhaul of French
employmentlaws,enactedbydecreeonSeptember22,
2017, changes to taxation, as part of the French
Government Budget Act 2018, and the PACTE action
plan for business growth and transformation to help
SMEs and micro-enterprises – point to the
government’s dynamic approach. These reforms
promise, in the medium term, to help transform
France’s business image and enhance its investment
attractiveness. The latest opinion polls suggest that
this aim has already been achieved, although you
may have to wait for next year’s Scoreboard to check
the results.
The data from the 2018 France Attractiveness
Scoreboard proves that we are on the right track,
with France having made progress on no fewer
than 22 of the report’s key indicators.
I do hope you enjoy reading this year’s edition.
8
9. CHRISTOPHE LECOURTIER
CEO of Business France
The reforms carried out over the past year
point to the government’s dynamic approach.
These reforms promise, in the medium term,
to help transform France’s business image
and enhance its investment attractiveness.
9
FRANCE ATTRACTIVENESS SCOREBOARD. OVERVIEW
10. Introduction
Economic attractiveness is defined as
the capacityto attract new business
and mobile factors of production – capital
and skilledlabor – to a specificlocation,
whose attractiveness is therefore
closely related to its competitiveness.
Howeverlarge a country or region may be,
a failure to be competitive may lead
inexorably to population decline,
disinvestmentand an exodus of businesses.
10
11. In just a few years, this concept of
attractiveness has become a key
factor in the economic performances
of different countries, and their full
participation in the global economy.
The challenge is to attract job-creating
foreign investments given the major
role they play in industrialization and
regional economic development.
Foreign direct investment is seen
to drive economic growth through
technology and knowledge transfers
that underpin competitiveness and
boost innovation in the host country.
Attracting foreign talent (international
students and personnel) is a way
of tapping into global talent pools,
enhancing teaching skills, and fostering
the development of ecosystems for
research and manufacturing in
numerous countries.
This is why many governments around
the world have policies to attract
foreign talent and investment.
Economic attractiveness is the
reflection of a wide range of
macroeconomic criteria. By compiling
a vast array of economic data without
resorting to data-weighted aggregate
indicators, we can provide objective
analysis of France’s attractiveness as
an investment location. Key indicators
include market size, human capital,
research and innovation, infrastructure,
administrative and financial
environments, investment and labor
costs (including taxation, which plays a
significant role), as well as quality of life.
Each subject is discussed with
reference to specific indicators,
and comparisons are made between
France and 13 OECD countries: Austria,
Belgium, Finland, Germany, Ireland,
Italy, Japan, the Netherlands, Poland,
Spain, Sweden, the United Kingdom
and the United States.
These countries play a major role in
international investment and have
similar skill sets and/or substantial
economic relations with France. Poland
was chosen as a major economy from
Central and Eastern Europe. The relative
performances of these 14 countries are
also compared with the EU average,
wherever possible, while for some key
indicators a comparison is made with
other countries from around the world.
This ninth edition of the France
Attractiveness Scoreboard confirms
the openness of France’s economy to
the world: a nation at the heart of global
trade, one of the three most attractive
European economies in the eyes of
job-creating foreign investors, Europe’s
leading recipient of foreign investment
in industry for the last 15 years, and
the fourth most popular destination
in the world for international students.
The France Attractiveness Scoreboard
highlights that France can count on a
number of key strengths, including its
large domestic market and central
location within Europe, its vibrant
demographics, excellent tertiary
education system, high labor
productivity, excellent infrastructure,
a dynamic entrepreneurial environ-
ment, and superb quality of life.
It also confirms that employment law
and taxation are areas in which France
must regain ground in today’s
competitive environment.
11
FRANCE ATTRACTIVENESS SCOREBOARD. INTRODUCTION
14. 1.1
Foreign
direct investment
Global foreign direct investment (FDI) flows declined
by 23% in 2017 to US$1,430 billion.
While FDI inflows to developed countries were down
by 59%, they remained for the third year in succession
the leading recipients of global FDI inflows.
Foreign investments in France increased significantly
in 2017, more so than in France’s leading commercial
partners, due in particular to the thriving nature of
investments from the United States and the United
Kingdom. France remains the leading country in
Europe for attracting the largest volume of industrial
investments.
Data from the United Nations Conference on Trade and
Development (UNCTAD) show that global foreign direct
investment (FDI) flows grew from US$1,867 billion in 2016
to US$1,430 billion in 2017.
Global FDI flows were down 23% and were mainly orientated
at developed economies (US$712 million, or 59% of global
flows). While the European Union enjoyed US$300 billion of
FDI inflows in 2017, the United States remained the leading
recipient of foreign investment, despite declining from
US$457 billion in 2016 to only US$275 billion.
FDI inflows to developed countries contracted sharply in
2017, from US$1,133 billion to US$712 billion, due notably
to the fall in FDI inflows to the United Kingdom. In the current
context of great uncertainty surrounding Brexit, the balance
of inflows over the year was virtually zero, while it was nearly
US$200 million in 2016.
Inflows in emerging economies remained stable in 2017
at US$670 billion. While China’s balance stabilized at around
US$135 billion, it became the second leading recipient of FDI
in the world, replacing the United Kingdom. FDI inflows in
Brazil were also at a high level (US$62 billion), while India
saw a reduction in FDI inflows from US$45 billion in 2016
to US$39 billion in 2017.
FDI inflows in France were US$49 billion in 2017, a record
high in the last 10 years. France enjoyed the seventh largest
volume of FDI inflows in 2017 (while it was ranked 17th
in 2016), and the second largest in Europe, just after the
Netherlands, and ahead of Austria and Germany.
The world’s stock of FDI amounted to US$31,500 billion
in 2017, up 14% from 2016. It includes US$20,000 billion
in developed countries, including US$9,000 billion in the
European Union and US$7,800 billion in the United States.
The stock of FDI in emerging countries is worth around
US$10,000 billion, up 12% from 2016. China and Hong Kong
together host nearly US$3.5 billion of FDI inflows.
Inward FDI stock in France amounted to US$875 billion
in 2017. As such, it has increased at a higher rate than
in its main partner countries (+24% in France, versus +19%
in the United States, +18% in Germany, +6% in the United
Kingdom) and nearly twice as quickly as the average for
European Union countries. France hosts the world’s 11th
highest FDI stock, a stable position since 2013, and has
the fifth highest FDI stock in the European Union.
The countries with the highest FDI outflows in 2017 were the
United States (US$342 billion, versus US$280 billion in 2016),
Japan (US$160 billion, versus US$145 billion in 2016), and
China (US$124 billion, versus US$196 billion in 2016, a fall
due to the implementation of restrictive policies following
large capital outflows in 2015).
In terms of stock, the United States (US$7,800 billion), Hong
Kong (US$1,800 billion) and Germany (US$1,600 billion)
were the main source of FDI outflows in the world.
FDI outflows in France were worth US$58 billion in 2017,
versus US$63 billion in 2016. French FDI stock held abroad
was worth US$1,450 billion in 2017, up 13% from 2016.
France was the ninth largest source of FDI in the world in
2017, in terms of stocks.
14
15. Source: UNCTAD, 2018
Source: UNCTAD, 2018
Fig 2. FOREIGN DIRECT INVESTMENT INFLOWS (2017)
LEADING 20 RECIPIENTS - CURRENT US$ BILLION
Fig4.OUTWARDFDIFLOWS(2017)
LEADING 20 RECIPIENTS - CURRENT US$ BILLION
2,000
1,600
1,200
800
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997Graph1. Flux d'investissements directs étrangers entrants (1995-2017)
Chap 1
Graph 9. Contribution des filiales étrangères à l'emploi (2015)
Graph 10 Contribution des filiales étrangères à la R&D (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807
Graph 4. Flux d'IDE sortants (2017)
350
300
250
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
Dec.2002Dec.2003Dec.2004Dec.2005Dec.2006Dec.2007Dec.2008Dec.2009Dec.2010Dec.2011Dec.2012Dec.2013Dec.2014Dec.2015Dec.2016Dec.2017
Graph 12. Top 20. Nombre d'étudiants en mobilité internationale par pays d'accueil
1,000,000
900,000
800,000
700,000
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997
Graph 10 Contribution des filiales étrangères à la R&D (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807
UnitedKingdomHongKong
China
Japan
Ireland
Thailand
Taiwan
United
ArabEmirates
Spain
RussiaSouthKorea
Belgium
SingaporeSwedenNetherlands
Germany
Luxembourg
France
Canada
Graph 4. Flux d'IDE sortants (2017)
350
300
250
200
150
100
50
0
UnitedStates
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
Dec.2002Dec.2003Dec.2004Dec.2005Dec.2006Dec.2007Dec.2008Dec.2009Dec.2010Dec.2011Dec.2012Dec.2013Dec.2014Dec.2015Dec.2016Dec.2017
Graph 5. Stock d'IDE sortants (2017)
Graph 12. Top 20. Nombre d'étudiants en mobilité internationale par pays d'accueil
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
UnitedKingdomAustralia
SwitzerlandDenmark
Japan
Canada
Ireland
Spain
SwedenHungary
FinlandPortugal
NetherlandsAustriaBelgium
Poland
NewZealand
Germany
France
UnitedStates
Graph 13. Part des etudiant en mobolité internationnale ds l’enseignement superieur
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
Source: UNCTAD, 2018
Fig 3. INWARD FDI STOCK (2017)
LEADING 20 RECIPIENTS - CURRENT US$ BILLION
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807UnitedKingdomHongKong
China
Japan
Ireland
Thailand
Taiwan
United
ArabEmirates
Spain
RussiaSouthKorea
Belgium
SingaporeSwedenNetherlands
Germany
Luxembourg
France
Canada
Graph 4. Flux d'IDE sortants (2017)
350
300
250
200
150
100
50
0
UnitedStates
6
5
4
3
2
Graph 5. Stock d'IDE sortants (2017)
G
1
G
7
6
5
4
3
2
1
Source: UNCTAD, 2018
Fig 5. OUTWARD FDI STOCK (2017)
LEADING 20 RECIPIENTS - CURRENT US$ BILLION
50
40
30
Graph 6. Flux d'IDE entrants en France
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
0
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
ItalyAustralia
Brazil
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807
UnitedKingdomHongKong
China
Japan
Ireland
Thailand
Taiwan
United
ArabEmirates
Spain
RussiaSouthKorea
Belgium
SingaporeSwedenNetherlands
Germany
Luxembourg
France
Canada
Graph 4. Flux d'IDE sortants (2017)
350
300
250
200
150
100
50
0
UnitedStates
Graph 5. Stock d'IDE sortants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedKingdom
HongKong
Switzerland
Japan
Ireland
Spain
Russia
SouthKorea
Belgium
Singapore
Sweden
Netherlands
Germany
France
Canada
China
UnitedStates
1
4
7,799
Source: UNCTAD, 2018
Fig 1. FOREIGN DIRECT INVESTMENT INFLOWS
1995-2017 - CURRENT US$ BILLION
Developedcountries Emergingeconomies Transitioneconomies
2,000
1,600
1,200
800
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997
Graph1. Flux d'investissements directs étrangers entrants (1995-2017)
Chap 1
Graph 9. Contribution des filiales étrangères à l'emploi (2015)
Graph 10 Contribution des filiales étrangères à la R&D (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807
Graph 4. Flux d'IDE sortants (2017)
350
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
Dec.2002Dec.2003Dec.2004Dec.2005Dec.2006Dec.2007Dec.2008Dec.2009Dec.2010Dec.2011Dec.2012Dec.2013Dec.2014Dec.2015Dec.2016Dec.2017
Graph 12. Top 20. Nombre d'étudiants en mobilité internationale par pays d'accueil
1,000,000
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
15
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
16. *Updateddata-Source:BanquedeFrance,2018
Fig 6. FDI INFLOWS TO FRANCE - € BILLION
Sharecapital,includingrealestate Reinvestedearnings
Intra-grouploansandcommercialloans Total
50
40
30
20
10
0
-10
-20
Graph 6. Flux d'IDE entrants en France
2008 2009 2010 2011 2012 2013 2014 2016 20172015
ItalyAustralia
Brazil
1,500
1,000
500
0
UnitedKingdom
HongKong
Switzerland
Japan
Ireland
Spain
Russia
SouthKorea
Belgium
Singapore
Sweden
Netherlands
Germany
France
Canada
China
UnitedStates
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
OECD
Finland
EU-22
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
Graph 14. part des etudiant en mobolité internationnale ds l’enseignement superieur
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
composant electroniques
chimie
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
agroalimentaire
production
Source: Banque de France, 2018
Fig 7. FDI INFLOWS TO FRANCE - € BILLION
2015 2016 2017
Total FDI flows 42.3 31.8 444.2,2
Share capital 28.6 27.2 28.9
Reinvested earnings 6.8 7.9 6.5
Other transactions
(intra-group loans)
6.9 -3.3 8.7
According to data from the Banque
de France, the balance of foreign
investment inflows in France was
+€44.2 billion in 2017, versus +€31.8
billion in 2016, the highest level in the
last 10 years. FDI flows from the
United Kingdom rose to €17.8 billion
(versus only €1.9 billion in 2016), with
a particularly marked increase in the
automotive, real estate and financial
sectors. The other main suppliers of
investment flows were the
Netherlands (+€7.3 billion, including
the buyout of French poultry producer
Duc by Plukon Food) and the United
States (+€7.1 billion, including the
setting up of a wind turbine blade
production facility in Cherbourg by
General Electric). Finland, which was
the main investor in terms of flows in
France in 2016 due to the acquisition
of Alcatel-Lucent by Nokia, once again
held a rank more in keeping with our
bilateral relations (€3.4 billion, versus
€12.4 billion in 2016).
Moreover, share capital investments
(including real-estate investments)
rose to +€28.9 billion in 2017 in the
wake of a number of major mergers
and acquisitions (such as the buyout
by the German group Boehringer
Ingelheim of Merial, the animal health
subsidiary of Sanofi, for more than
€11 billion). The reinvested earnings
amounted to +€6.5 billion, versus
+€7.9 billion in 2016. Finally, intra-
group loans (flows of internal loans
between subsidiaries belonging to the
same parent company) amounted to
+€8.7 billion in 2017, versus a negative
balance of -€3.3 billion in 2016.
Foreign direct investment
flows, Banque de France
16
17. The stock of foreign direct investments
(FDI) in France in 2017 was €729 billion,
up 9% from the previous year, and rising
more quickly than the annual average of
around 7% over the five previous years.
At sector level, the stock of FDI in
manufacturing industries was up 16%
in 2017, and with a total of €195 billion
– 27% of all inward stock – France was
the country that attracted the largest
number of industrial investments in
Europe.
Financial and real-estate activities,
which together have attracted more
than 50% of FDI stock in France, saw
their investments increase 6% year
on year. FDI stock in scientific and
technical activities and in construction
rose 3%, while the rise was 10% in
commercial activities.
In terms of French direct investment
abroad, the stock of investments was
estimated to be nearly €1,200 billion
at the end of 2017, consistent with
the previous year. The euro zone
concentrated 45% of French foreign
investment stock, versus 20% for
North America, with the United States
remaining the leading target for
French FDI with €210 billion.
In terms of flows, the balance of French
investments abroad was €51 billion,
compared with €57 billion in 2016.
This decline was due in particular
to a negative balance with Belgium
(-€10 billion, compared with +€9 billion
in 2016), Qatar (-€1.5 billion) and
China (-€0.9 billion). The United States
remained the leading destination for
French FDI flows (+€14.3 billion, versus
€15.4 billion in 2016), followed by
Luxembourg (+€10.1 billion) and
Germany (+€8.6 billion).
Methodology
DEFINITION
OF FOREIGN DIRECT
INVESTMENT FLOWS
Global statistics on foreign investment flows and
stocks are collected by UNCTAD (and the IMF for stocks)
from central banks, statistics agencies and national
governments. At a methodological level, UNCTAD
draws on the recommendations in the 6th edition of
the IMF’s Balance of Payments manual. However,
some differences can be seen between data provided
by the two organizations, which can be justified by
different presentation criteria – currency, base year, etc.
A direct investment relationship is deemed to be
established when an individual or company (the investor)
owns 10% or more of the voting rights in the company
(which is then referred to as the direct investment
company) or, failing this, 10% of its share capital.
Thereafter, all financial transactions between the two
companies are recorded as foreign direct investment
in the financial account of the host country’s balance
of payments.
DATA
RELIABILITY
- FDI flows comprise a wide variety of transactions –
business creations, equity stake acquisitions,
real-estate investments (included in “share capital”)
and intra-group loans – which cannot be interpreted
in any meaningful way at aggregate level, as presented
by UNCTAD. As such, the Banque de France underlines
that the increase in FDI flows observed in recent years
mainly arises from intra-group loans, making it difficult
to interpret statistics on direct investments at an
aggregate level.
- FDI flows are highly volatile and frequently subject
to revision. Very sharp revisions from one year to
the next may lead to substantial modifications being
made to trends and the rankings of different countries.
Due to these methodological limitations, it is paramount
to couple the study of FDI flows and stocks with a more
micro approach, or by studying firms, so as to examine
the nature of the different investment projects.
The Business France Annual Report therefore attempts
to try this approach (impact study in terms of jobs, value
added, and RD created).
17
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
18. Labor market reforms helping businesses
to adapt quicker to economic change and
providing opportunities for job-seekers
Reforming social dialogue
and employment law
This comprises three main initiatives,
the first of which involves changing
the way company and sector-specific
agreements relate to one another,
thereby ensuring greater scope for
safeguarded collective bargaining
and for agreements to be concluded
at a micro level. Secondly, simplifying
and consolidating social dialogue,
principally by merging different
employee representative bodies
and restructuring the way sectors
are considered together as branches
for collective negotiations. Thirdly,
introducing clearer and more
predictable rules to govern working
relations, including new upper and
lower limits for damages awarded
by employment tribunals, reducing
time limits for submitting claims to
employment tribunals, encouraging
mediation between employers and
employees, redefining the scope for
economic grounds to be invoked in
dismissals, and making it easier for
companies to carry out restructuring
through new collective termination
agreements.
Reforming unemployment
insurance benefit
The self-employed will now be
eligible for benefits, as will employees
upon resigning, in return for
greater oversight of job-seekers.
By underpinning transitions from one
employment status to another, this
reform will make it easier for people
to make career changes towards
better qualified jobs and will incentivize
the risk-taking inherent in being an
entrepreneur.
Reformingprofessional
development and
apprenticeships
through a government bill
due to be presented in 2018.
Standard corporate tax
rate to fall from 33.3%
to 25% by 2022,
starting in 2018.
Replacing the wealth tax
(impôt de solidarité sur
la fortune – ISF)
by a real estate tax (impôt sur la
fortune immobilière – IFI) and
introducing a standardized 30% flat
tax (prélèvement forfaitaire unique
– PFU) on capital gains.
Transferringthetaxburden
fromemployeecontributions
onto the social security
surcharge (contribution
sociale généralisée - CSG)
to lower payroll taxes and boost
employment.
Transforming the
competitiveness and
employment tax credit (crédit
d’impôt pour la compétitivité
et l’emploi - CICE)
into a permanent reduction in
employer social security
contributions from 2019 to provide
greater hiring incentives.
Tax reforms to underpin competitiveness,
investment and employment
18
19. Action plan to promote
growth in companies.
The PACTE bill (Plan d’action en
faveur de la croissance et de la
transformation des entreprises) was
presented in the Council of Ministers
on June 18, 2018. It aims to lift barriers to
corporate growth while also rethinking
the role of business in society. This is a
major issue to strengthen the
production base and increase the
attractiveness of the country.
A major €57 billion five-year
investment program
to boost France’s growth potential,
by fast-tracking ecological transition,
building a knowledge society, driving
competitiveness through innovation,
and ushering in ‘government for the
digital age’.
A new €10 billion fund for
industry and innovation,
with a particular focus on breakthrough
innovation.
Transforming French manufacturing
and laying the foundations
on tomorrow’s growth
Introducing the right
to amend an error
for the benefit of entrepreneurs
acting in good faith in their relations
with the French authorities.
Simplifying
the regulatory framework
through a ‘one in, two out’ rule1
and by
prohibiting the practice of ‘gold-plating’
EU directives (government circular of
July 26, 2017).
A new agenda for Paris’
attractiveness as
a financial center
post-Brexit to enhance France’s
financial ecosystem: Abolishing the tax
on intra-day transactions along
with the fourth (and previous highest)
bracket of the payroll tax (taxe sur les
salaires) from 2018; opening new
international high schools and
setting up new bilingual classes to
help high-skilled employees and their
families settle in to life in Paris.
Greater simplification
of the business environment
1
Any new regulatory standard must be compensated for by the removal or simplification of at least two existing regulations in the same area.
19
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
20. The attractiveness of an economy can also be
assessed by the number of physical job-creating
foreign investment projects (new production
facilities or service centers) and business
expansions.
Each year, according to the Business France
Annual Report on the international development
of the French economy, foreign investment in
France enables around 30,000 jobs on average
to be created or saved: this means that France,
along with the United Kingdom and Germany,
is one of the most attractive countries for job-
creating foreign investment projects in Europe.
The number of investment decisions made by multinational
firms in Europe remained buoyant in 2017 after rising 12%
from 2016.
According to Business France’s Europe Observatory,
France received 19% of job-creating foreign investment
recorded in Europe, ahead of the United Kingdom (16%)
and Germany (13%).
The United States was the leading investor in Europe,
accounting for 26% of investments recorded, ahead of
Germany with 12% of projects. With 7% of projects,
France was the fourth largest investor in Europe after
the United Kingdom.
1.2
Physical job-creating
foreign investment
Source: Europe Observatory,
Business France
19.2%
16.1%
4.6%
0.6%
1%
3.4%
3.8%
2.4%
2.1%
1.2%
1.1%
2.3% 7.8%
2.1%
5.1%
13.3%
UNITED
KINGDOM
SPAIN
ITALY
GERMANY
SWITZERLAND
SWEDEN
0.6%
NORWAY
FINLAND
HUNGARY
ROMANIA
BULGARIA
SLOVAKIA
CZECH
REPUBLIC
LITHUANIADENMARK
AUSTRIA
PORTUGAL
IRELAND
FRANCE
POLAND
1.2%
1.6%
2.3%
4.7%
0.6%
BELGIUM
NETHERLANDS
LUXEMBOURG
1.3%
FIG 8. DISTRIBUTION OF JOB-CREATING FOREIGN
INVESTMENT PROJECTS IN EUROPE (2017)
20
21. 2017, the best year
in a decade, +16% increase
in foreign investment
According to the Business France
Annual Report on foreign investment
in France, 1,298 investment decisions
were recorded in 2017, up 16% from
2016 (1,117 decisions), enabling 33,489
jobs to be created or maintained.
On average, 25 investment decisions
were recorded each week in France last
year, and 412 new businesses decided
to base their activities in France,
representing 32% of recorded projects.
There was an 11% rise in
the number of jobs created
or maintained,
with jobs created growing 6% to 26,399,
and a 34% rise in jobs maintained, rising
to 7,090 jobs.
Foreign businesses prioritized
investment in production/
manufacturing activities.
There were 343 investments in
industrial activities in 2017,
representing 26% of all investments.
These activities were the leading
contributor to employment in 2017,
with 16,213 jobs, or 48% of all jobs
generated by foreign investment.
The number of jobs generated by
production/manufacturing
investments grew sharply (+44%),
which was reflected in a rise in the
average project size (47 jobs per
investment decision). For example,
the Swedish Volvo Group announced
several expansions in 2017 at
production sites in France, creating
more than 160 jobs in the Auvergne-
Rhône-Alpes region, while Anglo-
Swedish pharmaceutical giant
AstraZeneca invested €135 million
in Dunkirk, and General Electric
(United States) decided to invest €120
million to establish a new wind turbine
blade production facility in Cherbourg
(Normandy), enabling more than 500
jobs to be created.
There was a 9% increase
inRD,engineeringanddesign
investments from 2016:
125 investment decisions were
recorded, representing 10% of all
projects.
Investments such as these included
those by American firm ZenDesk,
a global leader in customer service
software development, which decided
to double its RD personnel in
Montpellier by recruiting a further
50 engineers.
Meanwhile, German group Sartorius,
a subsidiary of the Göttingen group,
which specializes in producing
consumables for the pharmaceutical
industry, decided to significantly
increase RD capacity by hiring 200
new employees, including 80 at its
facility near Marseille.
21
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
22. The presence of RD centers and headquarters
of multinational groups has a domino effect
on the rest of the economy through knowledge
and technology transfers. Investment projects
like these deserve to be recognized as strategic.
These activities contribute strongly to France’s
investment attractiveness and the growth
potential of the French economy. In 2017, France
was the country that attracted the most industrial
investment, as well as the largest number of
foreign RD centers in Europe.
In 2017, France was the leading recipient of RD activities
in Europe, attracting 16% of RD centers on the continent,
versus 15% in the United Kingdom and 12% in Germany.
The United Kingdom remained the leading country
attracting corporate headquarters, receiving 25%
of all investments in Europe.
France was also Europe’s leading recipient of foreign
investment in industry, with around 25% of all investments
in Europe. For these purposes it enjoys a number of
advantages in the field (presence of sectors and major
clients, expertise, and transport infrastructure). Among
others, France attracts 37% of investments in the
machinery and mechanical equipment sector and 25%
in the agri-food sector.
France is a preferred destination for foreign investments
in the chemicals/plastics sector, attracting 19% of foreign
investment in Europe in this area.
France also attracts 15% of foreign investment in Europe
in the software IT services sector, slightly more than
Germany (14%).
Finally, in knowledge-intensive services, such as consulting
and financial services, France is ranked second among
investment recipients, after the United Kingdom.
The Paris financial marketplace appears particularly well
placed to increase its attractiveness. Since Brexit was
announced, around 3,000 jobs are being created in Paris,
according to Paris Europlace, enabling nearly 20,000
indirect jobs to be generated. A number of banks have
already announced their intention to set up entire branches
of their activity in Paris.
Moreover, the growing attractiveness of the Paris financial
marketplace has been shown, notably by the decision in
September 2017 to install the European Banking Agency
in Paris. This decision will create 170-190 jobs and in the
longer term, with the presence of the European Securities
and Markets Authority, should enable Paris to lead the way
as the European bridgehead for major players from the
financial services sector.
22
23. Fig 9, 10, 11, 12, 13, 14. MULTINATIONAL FIRM INVESTMENT DECISIONS (2017)
EUROPEAN MARKET SHARE (%)
10
0
-10
-20
2008 2009 2010 2011 2012 2013 2014 2016 20172015
Flux de migration
90,000
80,000
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
composant electroniques
chimie
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
Chemicals, plastics Pharmaceuticals Biotechnologies
30
20
10
0
-10
-20
2008 2009 2010 2011 2012 2013 2014 2016 20172015
Flux de migration
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
composant electroniques
chimie
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
Headquarters RD, engineering
F
9
8
7
6
5
4
3
2
1
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
1
1
2
1
1
1
1
1
2
2
1
1
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
c
c
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
50
40
30
20
10
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
Production / Manufacturing Logistics
017
azil
outhKorea
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
OECD
Finland
EU-22
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStatesGraph 14. part des etudiant en mobolité internationnale ds l’enseignement superieur
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
ustria
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
Finland
composant electroniques
chimie
conseil ingenérie
Consulting, engineering Financial services
-10
-20
2008 2009 2010 2011 2012 2013 2014 2016 20172015
Flux de migration
90,000
80,000
70,000
60,000
50,000
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
composant electroniques
chimie
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
50
40
Agri-food Machinery mechanical equipment
-10
-20
2008 2009 2010 2011 2012 2013 2014 2016 20172015
Flux de migration
90,000
80,000
70,000
60,000
50,000
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland 25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
composant electroniques
chimie
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
50
40
Electronic components Software IT services
Source: Europe Observatory, Business France
23
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
24. Restrictions on
foreign investments
The French market is
characterized by its openness
to foreign investors.
This openness finds its source in the
legal and regulatory framework, which
explicitly states that “France is free to
conduct financial relations with other
countries” (article L.151-1 of the French
Monetary and Financial Code.)
On the founding on
internationalandEuropean
standards, France has
a policy of control that
is strictly governed,
anwhichislimited,asin
othercountries,inits
implementation.
Indeed, many European countries
(including Germany, the United
Kingdom, Italy) and elsewhere in
the world (such as the United States,
Canada, Australia) use legislation to
restrict foreign investment in sectors
deemed to be strategic.
The provisions of articles
L.151-3 and R.153-1 and
following of the Monetary
and Financial Code establish
asetofrestrictionsforforeign
investments subject to prior
authorization in two ways:
- A control of investments made by
investors from European Union or
European Economic Area Member
States and those from third-party
countries, in order to comply with
European Union treaties.
- A control only carried out during
a foreign investment in a limited
number of sectors laid down by
statutory restriction, as they are
considered to be sensitive due to
their impact on public order, public
security and national defense.
Theriskcontrolframeworkfor
foreigninvestmentsiscurrently
beingreformed,withplans
including:
1 / Improved processing of operations
carried out without prior authorization
by the introduction of a possibility for the
minister responsible for the economy to
order the investor to file a request subse-
quent to the operation being completed.
2 / The possibility for companies
targeted by foreign investments to
request that the authorities check
whether an operation should be subject
to authorization. Of particular note, only
the investor can make such a request at
present.
3 / The expansion of the list limiting
sectors considered as sensitive to
sectors of the future.
4 / Increasing policing power and the
minister for the economy’s power of
sanction, combined with more effective
consideration of guarantees attached
to principles of proportionality and
contradiction.
24
25. Business France
Annual Report
Every year since 1993, the Annual
Report, produced by Business France
(and historically by the Invest in France
Agency) in association with France’s
regional economic development
agencies, has recorded the number
of job-creating investment projects in
France initiated by foreign companies.
It includes a census of the jobs created
in the first three years of each project,
as well as detailed statistics categorized
by business sector, investment type,
business activity, source country and
host region.
Types of job-creating
investment recorded:
- Creations, which reflect the number
of jobs created at a new site.
- Expansions, which generate new
jobs at an existing site.
- Takeovers, which include jobs saved
when a foreign company acquires an
ailing company.
- Expansions through takeovers,
where the jobs counted are those
created after a foreign investor
acquires a non-ailing French
company.
- Expansions following buyouts, which
include jobs saved when a foreign
company acquires a company with
no financial difficulties.
Data gathering
The data in the Business France
Annual Report are compiled from
three sources:
- Investment projects identified
and supported by Business France.
- Projects directly monitored by
Business France’s regional partners
in France.
- The Business France “France
Observatory”, which monitors
the international financial press to
identify foreign companies that may
wish to make an investment in
France. Every year, over 700 foreign
investment projects are added to this
observatory.
Business France
Europe Observatory
Since 2007, this Observatory
has tracked job-creating foreign
investment projects in Europe
that have received media coverage.
Sources include press releases,
newspapers and the specialized
press, trade publications and company
websites.
Every investment decision is attributed
to the investing company’s parent
company. Two types of investments
are recorded: new sites and expansions
of existing sites. The Observatory does
not cover mergers and acquisitions,
equity interests or strategic alliances.
EY European Investment
Monitor
The EIM database includes all publicly
announced job-creating foreign direct
investment projects which are either
new site creations or expansions such
as production facilities, logistics
platforms, back office centers, shared
service centers, headquarters, RD
centers, sales and marketing offices, etc.
Crossborder Investment
Monitor, fDi Markets
Since 2003, the Crossborder Investment
Monitor database, generated by fDi
Markets using the same techniques as
observatories, has been providing data
on the investment projects of foreign
firms around the world. Only “greenfield”
projects (site creations) and expansions
are counted, while mergers and
acquisitions, capital interests and
strategic alliances are excluded.
The observatories only reveal a
sub-section of the investment decisions
that Business France and its regional
partners verify and record every year
to compile the Annual Report. Despite
their data-gathering limitations, the
observatories are used to assess the
relative positions of countries in Europe.
Job-creating
investments
25
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
26. 1.3
Contribution
of foreign subsidiaries
The economic contribution made by foreign-owned
companies is particularly evident in the
manufacturing industry.
France is very open to foreign investment. Although
foreign companies only account for one percent of
all companies operating in France, they generate
nearly one employee in nine (one in five in the
manufacturing sector). The large share of foreign
investors in the market capitalization of French
companies is further proof of the openness and
attractiveness of France’s economy.
Foreign-owned companies (as measured by Foreign Affiliates
Trade Statistics – FATS) make a meaningful contribution
to different economies. The following indicators illustrate
the degree of internationalization in each. In 2015, these
companies were well represented in the manufacturing
sectors of all leading developed countries: in many European
Union countries, they were responsible for more than 25%
of the value added in the sector. In France, the contribution
of foreign subsidiaries to value added was 17% in 2015
(27% in the manufacturing sector).
The contribution of these subsidiaries to employment varies
by country and is also more significant in the manufacturing
sector. In Ireland, Sweden, Poland and Belgium, more than
one-third of all manufacturing jobs are with foreign firms,
while in France, 22% of employment in the manufacturing
sector is provided by foreign-owned companies.
The internationalization of different economies can also
be measured by comparing the contribution made by
foreign subsidiaries to RD expenditure. In Europe,
these subsidiaries play a leading role in RD operations
in Belgium, Ireland, Austria and the United Kingdom.
In France, foreign subsidiaries account for 26%
of business enterprise RD expenditure.
The large share of foreign investors in the market
capitalization of French companies is further proof
of the attractiveness of France’s economy.
According to the Banque de France (cf. Bulletin de la Banque
de France no. 219 September-October 2018), non-resident
equity holdings in French companies on the CAC 40 amounted
to 42.7% (down 2.4 percentage points) on December 31, 2017,
or €569 billion.
A total of 44.6% of non-resident investors were from the
euro zone, compared with a third from the United States,
and 7.7% from the United Kingdom, while the share of
Asian and Middle Eastern countries remained low.
Source: OECD, Inward Activity of Multinationals, 2018
Fig 15. CONTRIBUTION OF FOREIGN SUBSIDIARIES
TO EMPLOYMENT (2015) - % OF TOTAL
Flux d
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
25%
20%
15%
10%
5%
0
Un
Uni
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
compagroalimentaire
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
50
40
30
20
10
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
Total Manufacturing Services
26
27. Source: OECD, Inward Activity of Multinationals, 2018
Fig 17. CONTRIBUTION OF FOREIGN SUBSIDIARIES
TO RD (2015) - % OF TOTAL
2016
2017
Graph 9. Contribution des filiales étrangères à l'emploi (2015)
Graph 10 Contribution des filiales étrangères à la RD (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
uthKorea
a
en
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
2
3
4
5
6
7
8
9
0
11
12
3
4
5
6
7
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
Total Manufacturing Services
THE OPEN NATURE
OF THE FRENCH ECONOMY
According to the French National Institute for
Statistics and Economic Studies (INSEE), foreign
subsidiaries:
- Employ one-fifth of the manufacturing sector
workforce in France
- Generate 27% of value-added in French industry
- Generate 30% of French manufacturing exports
- Account for 21% of business enterprise RD
expenditure in France (French Ministry for Higher
Education and Research, 2017)
Thirty-two of the world’s top 500 companies are
German, 28 are French, and 21 are British (Global
Fortune 500, 2018).
Source: OECD, Inward Activity of Multinationals, 2018
Total Manufacturing Services
2,000
1,600
1,200
800
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997
Graph1. Flux d'investissements directs étrangers entrants (1995-2017)
ap 1
Graph 9. Contribution des filiales étrangères à l'emploi (2015)
Graph 10 Contribution des filiales étrangères à la RD (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
a
e
l
s
a
a
e
a
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
s
7,807
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
Fig 16. CONTRIBUTION OF FOREIGN SUBSIDIARIES
TO VALUE ADDED (2015) - % OF TOTAL
2,000
1,600
1,200
800
400
0
1999
1998
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1996
1997
Graph1. Flux d'investissements directs étrangers entrants (1995-2017)
ap 1
Graph 9. Contribution des filiales étrangères à l'emploi (2015)
Graph 10 Contribution des filiales étrangères à la RD (2015)
Graph 11 Taux de détention par les non-résidents du CAC 40
UnitedStates
HongKong
China
Ireland
Spain
Indonesia
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
Israel
SouthKorea
IndiaGermany
Switzerland
Russia
France
Canada
Graph 2. Flux entrants d'investissements étrangers directs (2017)
200
160
120
80
40
0
275
UnitedKingdom
HongKong
China
Ireland
SpainBelgium
Singapore
Brazil
Netherlands
Mexico
Australia
Italy
IndiaSweden
Germany
Switzerland
Russia
France
Canada
Graph 3. Stock d'IDE entrants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedStates
7,807
Graph 4. Flux d'IDE sortants (2017)
350
300
250
200
150
100
50
0
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
Dec.2002Dec.2003Dec.2004Dec.2005Dec.2006Dec.2007Dec.2008Dec.2009Dec.2010Dec.2011Dec.2012Dec.2013Dec.2014Dec.2015Dec.2016Dec.2017
Graph 12. Top 20. Nombre d'étudiants en mobilité internationale par pays d'accueil
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
UnitedKingdom
Finland
Sweden
Spain
Italy
UnitedStates
Netherlands
Germany
France
Austria
Poland
Ireland
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
70
60
50
40
30
20
10
0
Equityholdings %oftotalequityheld
Fig18.NON-RESIDENTEQUITYHOLDINGS
INCAC40COMPANIES
Source: Banque de France, 2018
27
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
28. 1.4
Foreign
skills
The ability to train foreign-born talent enhances
as much as it determines a country’s international
reputation and attractiveness. With more than
245,000 international students enrolled in tertiary
education in 2016, France was the fourth most
popular destination in the world after the United
States, the United Kingdom and Australia.
France plays a key role in international education,
which has a positive bearing on the French tertiary
education ecosystem. A high proportion of foreign
students are enrolled in advanced research programs
in France, accounting for 40% of PhD students.
In 2016, there were 4.6 million international students
in the world (and 3.5 million in tertiary education at
institutions in OECD countries). International student
numbers are very concentrated in various countries,
with historic trends exerting a strong influence on
destination choices.
The number of international students continues to rise
and may exceed nine million by 2025. The resulting highly
educated workforces can be seen to improve each
country’s innovation potential.
The number of foreign students in France grew by 2.5%
in 2016. With more than 245,000 international students,
France remains the fourth most popular destination for
students after the United States, the United Kingdom
and Australia, but ahead of Germany. As such, it is
the leading non-English speaking host country.
It should also be noted that France attracts students from
every continent. As such, France can be seen to play a key
role in international education. Similarities between
countries, including shared languages, historic ties,
geographic proximity, and political agreements (such as
the European Higher Education Area) all have a significant
influence on the destination choices made by international
students. The highest proportion of international students at
institutions in France are from African countries (42%), while
Asia is the second leading source region of students (21%).
Countries where teaching establishments achieve high
positions in international league tables are among the
most sought-after destinations by international students.
The excellent reputation of the French tertiary education
system, along with that of the French language, are key
advantages to attract foreign students to France. With 20
establishments among the 250 best universities aged 50
years or under listed by the Times Higher Education, France
is ranked third, after the United Kingdom (31 universities)
and Australia (22).
Training elites in tertiary education is also a question of
influence, and France is well positioned from this perspective:
40 of the “global leaders” in 2018 were educated in France,
leading it to third place after the United Kingdom (57) and
the United States (58).
Conversely, smaller European countries tend to attract
students from within Europe. More than half the international
students at institutions in Austria, the Netherlands and
Poland hail from other European countries.
In 2015, foreign students accounted for 10% of all students
enrolled in tertiary education in France, compared with
18% in the United Kingdom and 8% in Germany.
France stands out for its very high proportion of
international students in advanced research programs:1
40% of PhD students are from overseas. Conversely, in
Germany, only 9% of doctoral-level students are foreign.
Economic migration increased in more than half of OECD
countries in 2015, including an 8% increase in France,
and a particularly noticeable increase in researchers
(up by a record 14%).
1
Advanced research program = degree equivalent to a doctorate.
28
29. Source: OECD, Education at a Glance, 2018
Fig 19. NUMBER OF INTERNATIONAL
STUDENTS BY HOST COUNTRY - TOP 20 (2016)
Graph 11 Taux de détention par les non-résidents du CAC 40
Sweden
Taiwan
es
600
500
400
300
200
100
0
48%
46%
44%
42%
40%
38%
36%
Dec.2002Dec.2003Dec.2004Dec.2005Dec.2006Dec.2007Dec.2008Dec.2009Dec.2010Dec.2011Dec.2012Dec.2013Dec.2014Dec.2015Dec.2016Dec.2017
hKorea
Graph 12. Top 20. Nombre d'étudiants en mobilité internationale par pays d'accueil
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
UnitedKingdomAustralia
SwitzerlandDenmark
Japan
Canada
Ireland
Spain
SwedenHungary
FinlandPortugal
NetherlandsAustriaBelgium
Poland
NewZealand
Germany
France
UnitedStates
Graph 13. Part des etudiant en mobolité internationnale ds l’enseignement superieur
50
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
OECD
Finland
EU-22
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
Graph 14. part des etudiant en mobolité internationnale ds l’enseignement superieur
35
30
25
20
15
10
5
0
Source: OECD, Education at a Glance, 2018
Fig 21. PROPORTION OF INTERNATIONAL
STUDENTS IN HIGHER EDUCATION (2016)
17
lTaiwan
esthKorea
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
UnitedKingdomAustralia
SwitzerlandDenmark
Japan
Canada
Ireland
Spain
SwedenHungary
FinlandPortugal
NetherlandsAustriaBelgium
Poland
NewZealand
Germany
France
UnitedStates
Graph 13. Part des etudiant en mobolité internationnale ds l’enseignement superieur
50
45
40
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
OECD
Finland
EU-22
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
Graph 14. part des etudiant en mobolité internationnale ds l’enseignement superieur
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
ria
25%
20%
15%
10%
5%
0
dKingdom
Finland
Sweden
Spain
Italy
etherlands
Germany
France
Belgium
Austria
Poland
Ireland
conseil ingenérie
Science, mathematics and computing
Engineering, manufacturing and construction
Source: OECD, Education at a Glance, 2018
Fig 20. PROPORTION OF INTERNATIONAL
STUDENTS IN HIGHER EDUCATION (2016)
50
40
30
20
10
0
-10
-20
Graph 6. Flux d'IDE entrants en France
2008 2009 2010 2011 2012 2013 2014 2016 20172015
ItalyAustralia
Brazil
UnitedKingdomHongKong
China
Japan
Ireland
Thailand
Taiwan
United
ArabEmirates
Spain
RussiaSouthKorea
Belgium
SingaporeSwedenNetherlands
Germany
Luxembourg
France
Canada
350
300
250
200
150
100
50
0
UnitedStates
Graph 5. Stock d'IDE sortants (2017)
3,000
2,500
2,000
1,500
1,000
500
0
UnitedKingdom
HongKong
Switzerland
Japan
Ireland
Spain
Russia
SouthKorea
Belgium
Singapore
Sweden
Netherlands
Germany
France
Canada
China
UnitedStates
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
UnitedKingdomAustralia
SwitzerlandDenmark
Japan
Canada
Ireland
Spain
SwedenHungary
FinlandPortugal
NetherlandsAustriaBelgium
Poland
NewZealand
Germany
France
UnitedStates
Graph 13. Part des etudiant en mobolité internationnale ds l’enseignement superieur
50
45
40
35
30
25
20
15
10
5
0UnitedKingdom
Japan
Ireland
Spain
Sweden
OECD
Finland
EU-22
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
Graph 14. part des etudiant en mobolité internationnale ds l’enseignement superieur
35
30
25
20
15
10
5
0
UnitedKingdom
Japan
Ireland
Spain
Sweden
Finland
Netherlands
Austria
Belgium
Poland
Norway
Germany
France
UnitedStates
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
conseil ingenérieGraph 7. Décisions d'implantation des firmes multinationales (2017)
siege sociaux
7,799
Advanced research programs
All higher education
Source: OECD, International Migration Outlook, 2018
Fig 22. ECONOMIC MIGRATION INFLOWS (2015)
Flux de migration
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Canada
UnitedKingdom
Mexico
Italy
Switzerland
Denmark
Japan
Norway
Ireland
Spain
Sweden
Finland
Portugal
Netherlands
AustriaBelgium
NewZealand
Germany
France
Australia
UnitedStates
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
28%
24%
20%
16%
12%
8%
4%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
40%
35%
30%
25%
20%
15%
10%
5%
0
UnitedKingdom
Finland
Sweden
Spain
Italy
Ireland
Netherlands
Germany
France
Belgium
Austria
Poland
composant electroniques
chimie
agroalimentaire
production
Graph 8. Contribution des filiales étrangères à la valeur ajoutée (2015)
70
60
50
40
30
20
10
0
UnitedKingdom
Finland
Sweden
Spain
ItalyUnitedStates
Netherlands
Germany
France
Belgium
Austria
Poland
Ireland
29
FRANCE ATTRACTIVENESS SCOREBOARD. OUTCOME INDICATORS
31. Market size and strength
32
Education and human capital
38
Research and innovation
44
Infrastructures
Transports 52
Telecommunications 56
Electrical network and business offices 58
Administrative and regulatory
environment
60
Financial environment
68
Costs and taxation
Operating and labor costs 74
Taxation 81
Quality of life
84
Green growth
92
The perceptions
of foreign investors
98
31
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA
32. The size and strength of the host country’s market
(measured inter alia by nominal and per capita
GDP) are often decisive criteria for multinational
firms deciding where to locate.
In 2017, with a GDP of US$2,588 billion at current
prices, France was the world’s seventh largest
economy after the United States, China, Japan,
Germany, the United Kingdom and India.
Europe was the world’s second largest market in 2017:
EU-28 GDP was estimated to be US$17,325 billion at
current prices, compared with US$19,485 billion in the
United States and US$12,015 billion in China.
With a GDP of US$2,588 billion at current prices,
France was the world’s seventh leading economy in 2017,
after the United States, China, Japan, Germany, the United
Kingdom and India.
Since the end of 2014, the French economy has enjoyed
renewed momentum: according to the latest estimates
by the IMF,1
French growth had reached +1.0% in 2015
and 1.1% in 2016; and French GDP rose 2.3% in 2017.
The United States has also grown steadily for several
years (+1.6% in 2016 and +2.2% in 2017), as has
Germany (+2.2% and +2.5%) and the United Kingdom
(+1.8% and +1.6%).
In 2018, the French government predicts solid growth
in the French economy of +1.7%, as do forecasters:
+1.6% for INSEE,2
the Banque de France,3
the OECD,4
and the IMF.5
However, all forecasters remain prudent
faced with multiple factors affecting world growth, and
more particularly the euro zone: protectionist tendencies,
the scale of the effects of Brexit, a rise in oil prices, or once
again financial volatility.
GDP per inhabitant in France rose 3.9% in 2017 to
US$44,081, according to the latest data from the IMF,
ranking France after Germany, the United States and
the United Kingdom, but ahead of Japan.
France’s location and the size of its domestic market make
it a springboard into other European markets. A foreign
company will be minded to set up in a country where
1
World Economic Outlook, October 2018
2
Economic Briefing, October 2018
3
Economic forecasts as of September 2018
4
Economic Outlook, September 2018
5
World Economic Outlook, October 2018
* Estimate for the year 2017
Source : IMF, World Economic Outlook Database, October 2018;
Business France calculations from data series in local currencies at constants prices
Fig 23. COMPOUND ANNUAL RATE
OF REAL GDP GROWTH - %
Graph 1. Taux de croissance annuel moyen du PIB en volume
Chap 2.1
Graph 2. PIB par habitant en dollars et PPP courants
Graph 3. Accès aux marchés de l'UE 28
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
UnitedStates
Ireland
Austria*
Germany
Sweden
Belgium*
Finland
France
UnitedKingdom*
Japan
Italy*
Spain
Poland
Netherlands*
Ireland
Netherlands*
Sw
UnitedStates
2012
200
Ireland
Spain
Austria*
Germany
Sweden
UnitedStates
Japan
Belgium*
Italy*
France
Finland
Netherlands
Poland
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
-2%
UnitedKingdom
2013-2015 2015-2017 2017
2.1
Market size
and strength
32
33. FIG 24. DISTRIBUTION OF GLOBAL WEALTH (2017),
CURRENT GDP, US$ BILLION
Source: IMF, World Economic Outlook Database, October 2018
NORTH
AMERICA
CENTRAL
AMERICA
RUSSIA
EUROPE CENTRAL
ASIA
TURKEY
GREATER
CHINA
MIDDLE
EAST
AUSTRALIA + OCEANIA
SOUTH
KOREA
JAPAN
SOUTH
AMERICA
SUB-SAHARAN
AFRICA
NORTH
AFRICA
INDIA
SOUTH-EAST
ASIA
830 95
CURRENT GDP, US$ BILLION
18,700 13,000
4,900 2,800 850
21,140
NORTH
AMERICA
CENTRAL
AMERICA
3,700 1,950 830 95
CU
CURRENT GDP, US$ BILLION
EUROPE
33
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA
34. * Estimate for the year 2017
Source: IMF, World Economic Outlook Database, October 2018
Fig 24. GDP PER CAPITA
US$ AT CURRENT PPP
Graph 2. PIB par habitant en dollars et PPP courants
Graph 3. Accès aux marchés de l'UE 28
Graph 4. Dépense de consommation finale
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
UnitedStates
Ireland
Austria*
Germany
Sweden
Belgium*
Finland
France
UnitedKingdom*
Japan
Italy*
Spain
Poland
Netherlands*
Ireland
Netherlands*
Sweden
Germany
Austria*
Belgium*
Finland
UnitedKingdom*
France
Japan
Spain
Italy*
Poland
UnitedStates
2012
200
180
160
140
120
100
80
60
40
20
0
Belgium
France
GermanyUnitedKingdom
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
90%
80%
70%
2017
Ireland
Spain
Austria*
Germany
Sweden
UnitedStates
Japan
Belgium*
Italy*
France
Finland
Netherlands
Poland
18%
16%
14%
12%
10%
8%
6%
4%
2%
0
-2%
UnitedKingdom
domestic demand is high and where it can enjoy easy
access to other European markets. According to this
“access to EU-28 markets” criterion, France was ranked
third in 2017, ahead of Germany and the United Kingdom.
Furthermore, the French economy is well supported by final
consumption expenditure, which accounted for 78% of GDP
in 2017. This is slightly less than in the United Kingdom
(84% of GDP), but more than in Germany (72%).
France also enjoys a vibrant demographic profile, and has
Europe’s highest fertility rate, with nearly two children
per woman (1.92) in 2016.
Forecasts looking ahead to 2080 (excluding migration)
emphasize that France’s high fertility rate will enable it to
stabilize its population, while most other major European
nations are due to see falls.
Methodology
ACCESS TO
EXTERNAL MARKETS
The access to external markets variable is based
on a broader concept than GDP. It is similar to the
concept of trade potential and takes a country’s
external demand into consideration.
This indicator is calculated for EU-28 markets.
A country’s trade potential is defined as the sum
of the GDP of its neighboring countries weighted
by the distance between them.
34
35. Source: Eurostat
Fig 26. FINAL CONSUMPTION EXPENDITURE
% OF GDP
Graph 4. Dépense de consommation finale
Graph 6. exportation de marchandises 2017
Graph 5. Taux de fécondité 2016
UnitedStates
200
180
160
140
120
100
80
60
40
20
0
Belgium
France
GermanyUnitedKingdom
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
Belgium
France
Germany
UnitedKingdom
Austria
Japan
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
UnitedKingdom
France
Finland
Spain
Poland
Belgium
Germany
Austria
SwedenNetherlands
Ireland
EU-28
EU-28
14%
12%
10%
8%
6%
Italy
Source: IMF, World Economic Outlook Database, October 2018; Mayer, T. Zignago, S. (2011),
Notes on CEPII’s distances measures: the GeoDist Database, CEPII Working Paper 2011-25;
Business France calculations
Fig 25. ACCESS TO EU-28 MARKETS (2017)
IN COMPARISON WITH FRANCE - INDEX (FRANCE = 100)
Graph 3. Accès aux marchés de l'UE 28
Graph 4. Dépense de consommation finale
Graph 5. Taux de fécondité 2016
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
UnitedStates
Ireland
Austria*
Germany
Sweden
Belgium*
Finland
France
UnitedKingdom*
Japan
Italy*
Spain
Poland
Netherlands*
Ireland
Netherlands*
Sweden
Germany
Austria*
Belgium*
Finland
UnitedKingdom*
France
Japan
Spain
Italy*
Poland
UnitedStates
2012
200
180
160
140
120
100
80
60
40
20
0
Belgium
France
GermanyUnitedKingdom
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
2.0
1.8
1.6
1.4
1.2
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
UnitedKingdom
France
Finland
Spain
Poland
Belgium
Germany
Austria
SwedenNetherlands
Ireland
EU-28
Italy
2017
Source: Eurostat (EU-28), World Bank (United States and Japan)
Fig 27. FERTILITY RATE (2016)
CHILDREN PER WOMAN, ALL AGE GROUPS
Graph 4. Dépense de consommation finale
Graph 6. exportation de marchandises 2017
Graph 5. Taux de fécondité 2016
UnitedStates
160
140
120
100
80
60
40
20
0
Belgium
France
GermanyUnitedKingdom
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
Belgium
France
Germany
UnitedKingdom
Austria
Japan
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
UnitedKingdom
France
Finland
Spain
Poland
Belgium
Germany
Austria
SwedenNetherlands
Ireland
EU-28
EU-28
14%
12%
10%
8%
6%
4%
2%
Italy
Source: WTO; Business France calculations
Fig 28. GOODS EXPORTS (2017)
MARKET SHARE OF 15 LEADING ECONOMIES - % OF GLOBAL EXPORTS
Graph 7. exportation de services
Graph 6. exportation de marchandises 2017
Graph 5. Taux de fécondité 2016
UnitedStates
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
Belgium
France
Germany
UnitedKingdom
Austria
Japan
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
UnitedKingdom
France
Finland
Spain
Poland
Belgium
Germany
Austria
SwedenNetherlands
Ireland
EU-28
EU-28
UnitedStates
China
14%
12%
10%
8%
6%
4%
2%
0
Belgium
France
Germany
UnitedKingdom
Japan
Canada
MexicoSingapore
United
ArabEmirates
Italy
NetherlandsSouthKoreaHongKong
Italy
16%
14%
12%
10%
8%
6%
4%
2%
0
2011 2017
35
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA
36. Businesses tap into growth and global demand
by exporting goods and services produced in the
domestic market or by basing their operations
overseas. Their performances in this respect
have a direct bearing on the competitiveness
of countries and, in turn, on the attractiveness
of economies.
The acceleration of international trade is a result mainly
of strong growth in the euro zone (an area of intensive
intra-zone trade), a recovery in investment, containing
a high proportion of imports, an upturn of imports in Asia, and
a rebound in Russian imports after three years of contraction.
Notably, all the countries in our sample enjoyed this
recovery, with the strongest rises being seen in Poland
(+15.1%), Finland (+13.2%), the Netherlands (+12.9%),
Spain (+11%) and Ireland (+10.2%). According to UNCTAD,
exports of goods and services grew by 9.5% in the EU-28
in 2017, after stabilizing in 2016 (+0.3%).6
Amid a general upturn in global trade, according to
UNCTAD data, French export sales revenues of goods
and services rose by 7.5% in 2017, after two years of
6
Rates of growth are calculated using data in current dollars (UNCTAD data) and include an exchange rate effect with respect to variations calculated using data in
current euros. In 2017, the growth rate of French goods exports rose by 6.7% in current dollars (UNCTAD) and by 4.5% in current euros (French Customs Authorities).
Source: WTO; Business France calculations
Fig 29. SERVICES EXPORTS (2017)
MARKET SHARE OF 15 LEADING ECONOMIES
% OF GLOBAL EXPORTS
Graph 7. exportation de services
Graph 8. Taux de croissance annuel moyen des exportations de biens et
services
UnitedStates
China
14%
12%
10%
8%
6%
4%
2%
0
Belgium
France
Germany
UnitedKingdom
Japan
Canada
MexicoSingapore
United
ArabEmirates
Italy
NetherlandsSouthKoreaHongKong
UnitedStates
16%
14%
12%
10%
8%
6%
4%
2%
0
France
Germany
UnitedKingdom
SpainSwitzerland
India
Netherlands
Netherlands
China
Belgium
Japan
Singapore
ItalyHongKong
20%
15%
10%
5%
0%
-5%
-10%
-15%
Ireland
Netherlands
Spain
Finland
Austria
Germany
SwedenUnitedStates
EU-28
UnitedKingdom
Japan
Belgium
Italy
Poland
France
Source: UNCTAD, UNCTADstat; Business France calculations from data in current US$
Fig 30. COMPOUND ANNUAL RATE OF GOODS
AND SERVICES EXPORT GROWTH - %
Graph 7. exportation de services
Graph 8. Taux de croissance annuel moyen des exportations de biens et
services
UnitedStates
16%
14%
12%
10%
8%
6%
4%
2%
0
France
Germany
UnitedKingdom
SpainSwitzerland
India
Netherlands
Netherlands
China
Belgium
Japan
Singapore
ItalyHongKong
20%
15%
10%
5%
0%
-5%
-10%
-15%
Ireland
Netherlands
Spain
Finland
Austria
Germany
SwedenUnitedStates
EU-28
UnitedKingdom
Japan
Belgium
Italy
Poland
France
2013-2015 2015-2017 2017
36
37. decline (-12% in 2015 and -1.1% in 2016). French goods
export sales revenues grew by 6.7% in 2017 to US$535.2
billion, while services export sales revenues were up 5.8%
to US$248.2 billion.
French exports are forecast to improve in 2018, driven
by rising world demand for French goods and services.
Goods and services exports increased 4.2% year-on-year
in the first semester of 2018.
The flattening out of France’s share of world trade
revenues observed since 2012 continued into 2017
(latest year available). French exports accounted for 3.1%
of global goods exports (IMF figures) and 3.4% of global
goods and services exports (OECD figures).
In 2017, France price competitiveness7
improved slightly, lifted by relatively
higher margins of French exporters,
while cost competitiveness
deteriorated, principally due to the
strengthening of the euro.
France’s cost competitiveness,
measured with respect to its OECD
partners and including the effect of
the competitiveness and employment
tax credit (CICE), declined in 2017
as the euro appreciated in value:
-2.2% on an annual average, after
diminishing -0.6% in 2016. Between
2007 and 2017 it has nevertheless
improved by +5.8%.
Conversely, France’s price
competitiveness improved slightly
in 2017 (+0.4%) after having declined
by -1.1% in 2016. This growth, in
contrast to the deterioration the
previous year, reflects a greater effort
to trim margins by French exporting
companies (+2.7% on average during
the year). Since 2007, France’s price
competitiveness has increased by
+6.0%.
Source: Government report into France’s trade performance.
Results for 2017 (February 7, 2018).
The competitiveness
of the French economy
7
Definition: Export price competitiveness is defined as the ratio between exports prices for foreign goods or services and French goods or services. The foreign
export price is the combined average for all countries by their trade-weighted share in France’s different export markets. This weighting is based on the
importance of the market to France (proportion of total French exports) and the share held by the competitor country in this market.
37
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA
38. France has a highly qualified and productive
workforce and continues to invest in education
(including tertiary education) to maintain its
competitive advantage and consolidate its
scientific skills base.
Training, tertiary education and research are
all key drivers of a country’s competitiveness
and investment attractiveness. Tertiary education
provision enables students to acquire a broad
range of knowledge, skills and attitudes to build
the society of the future. This results in a more
productive workforce and a stronger economy.
Investment in education and training for the younger
generation determines an economy’s future productivity.
Keen to consolidate its position as a global economic
power, France invests heavily in education: expenditure
on education in France equated to 5.2% of GDP in 2015,
with 1.5% of GDP invested in tertiary education.
Spending on education receives particularly strong
support from the public authorities in France: 87.2%
of French education expenditure is government-funded
(77.9% for tertiary education), higher than in Germany
85.8% for total spending and 82.7% for tertiary education),
the United Kingdom (68.2% and 25%) and the United States
(67.6% and 35.2%).
Annual expenditure per student across all levels of
education (from primary to tertiary) confirms France’s
high level of commitment: a total of US$11,106 (PPP1
)
per student was spent in France in 2015, a higher level
than the OECD average (US$10,520) and similar to the
amount spent in Germany (US$12,139).
France’s financial commitment is reflected in statistics
on schooling, participation in education, and educational
achievement.
Levels of schooling in France were very high in 2016.
The 3- to 4-year-old age category achieved a 100%
enrollment rate in 2016; the rates for 5- to 14-year-olds
and 15- to 19-year-olds were 99.1% and 85.3%, respectively.
The lower rate for 15- to 19-year-olds is a result of schooling
being compulsory in France up to the age of 16.
The government recently announced that the minimum
age for leaving education and training is to be raised to 18.
The percentage of young people dropping out of
education and training early is falling sharply in France:
having been in excess of 11% until 2012, this percentage
had fallen to 8.9% in 2017, lower than in Germany (10.1%)
and the United Kingdom (10.6%), and below the EU-28
average (10.6%).
An assessment of the performance of 15-year-old
students (PISA survey) puts France in line with the
average, similar to the United Kingdom and Sweden.
French students perform particularly well in reading.
As regards scientific literacy among 15-year-old students,
8% of students achieved the highest levels in 2015. This is a
similar level to Austria (7.7%), Sweden (8.5%) and the United
States (8.5%), but lower than Germany (10.6%), the United
Kingdom (10.9%), Finland (14.3%) and Japan (15.3%).
In 2017, 35.2% of 25- to 64-year-olds in France had
tertiary education qualifications, lower than in the United
States (46.4%) and the United Kingdom (45.7%) but higher
than in Germany (28.6%). This difference is due to access
to tertiary education being democratized later in France,
which has since caught up.
Consequently, the population of 25- to 34-year-olds
is particularly highly qualified in France: 44.3% of people
in this age category gained a tertiary education qualification
in 2017, similar to the level in Belgium (45.7%) and the
Netherlands (46.6%), but lower than in the United Kingdom
(51.6%) and the United States (47.8%), and higher than in
Germany (31.3%) (cf. Fig. 38).
2.2
Education
and human capital
1
Purchasing power parity
38
39. Fig 31. TOTAL EXPENDITURE* ON EDUCATION (2015)
% OF GDP
* Public and private expenditure
Source: OECD, Education at a Glance, 2018
Graph 1. Dépenses totales* d'éducation (2015) Graph 10. Personnel de RD (2016)
Chap 2.2
Graph 2. Dépenses publiques d'éducation (2015) Graph 11. Productivité horaire du travail* en 2017
Graph 3. Dépenses annuelles totales par élève/étudiant (2015) Graph 12. Productivité par tête du travail* en 2017
Ireland
Ireland
Netherlands
Netherlands
Sweden
Sweden
Germany
Germany
Austria
Austria
Austria
Belgium
Belgium
Finland
Finland
Finland
France
France
Japan
Japan
Spain
Spain
Italy
Italy
Poland
Poland
35,000
30,000
25,000
20,000
160,000
140,000
120,000
100,000
7%
6%
5%
4%
3%
2%
1%
0%
18
16
14
12
10
8
6
4
2
0
90
80
70
60
50
40
30
20
10
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ireland
Ireland
Netherlands
Netherlands
Spain
Spain
Finland
Austria
Germany
Germany
Sweden
Sweden
UnitedStates
UnitedStates**
UnitedStates
UnitedStates
UnitedKingdom
Japan
Japan
Belgium
Belgium
Italy
Italy
Poland
Poland*
France
France*
UnitedKingdom
UnitedKingdom
UnitedKingdom
EU-28
EU-28
Italy
All levels of education
Tertiary education
Fig 32. PUBLIC EXPENDITURE ON EDUCATION (2015)
% SHARE OF TOTAL EXPENDITURE
Source: OECD, Education at a Glance, 2018
Graph 2. Dépenses publiques d'éducation (2015)
Graph 3. Dépenses annuelles totales par élève/étudiant (2015)
Graph 4. Taux de scolarisation (2016) G
Ireland
Netherlands
Sweden
Germany
Austria
Belgium
Finland
France
Japan
Japan
Spain
Italy
Poland
UnitedStates
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Belgium
France
Germany
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
6%
5%
4%
3%
2%
1%
0%
9
8
6
4
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ireland
Netherlands
Spain
Finland
Austria
Germany
Sweden
UnitedStates
UnitedStates
UnitedKingdom
Japan
Belgium
Italy
Poland
France
UnitedKingdom
UnitedKingdom
110%
100%
90%
80%
All levels of education
Tertiary education
Source: OECD, Education at a Glance, 2018
Fig33.TOTALANNUALEXPENDITUREPERSTUDENT(2015)
EDUCATIONAL INSTITUTIONS, ALL SERVICES - US$ PPP
Graph 2. Dépenses publiques d'éducation (2015) Graph 11. Productivité horaire du travail* en 2017
Graph 3. Dépenses annuelles totales par élève/étudiant (2015) Graph 12. Productivité par tête du travail* en 2017
Graph 4. Taux de scolarisation (2016) Graph 13. Evolution de la productivité horaire du travail*
Ireland
Ireland
Netherlands
Netherlands
Sweden
Sweden
Germany
Germany
Austria
Austria
Austria
Belgium
Belgium
Finland
Finland
Finland
France
France
Japan
Japan
Japan
Japan
Spain
Spain
Italy
Italy
Poland
Poland
UnitedStates
UnitedStates
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Belgium
Belgium
France
France
Germany
Germany
Austria
Austria
Ireland
Ireland
Poland
Poland
Sweden
Sweden
Italy
Italy
Spain
Spain
Finland
Finland
Netherlands
Netherlands
4%
3%
2%
1%
0%
10
8
6
4
2
0
90
80
70
60
50
40
30
20
10
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ireland
Ireland
Netherlands
Netherlands
Spain
Spain
Finland
Austria
Germany
Germany
Sweden
Sweden
UnitedStates
UnitedStates**
UnitedStates
UnitedStates
UnitedKingdom
Japan
Japan
Belgium
Belgium
Italy
Italy
Poland
Poland*
France
France*
UnitedKingdom
UnitedKingdom
UnitedKingdom
UnitedKingdom
UnitedKingdom
110%
100%
90%
80%
70%
60%
50%
40%
EU-28
EU-28
EU-28
5%
4%
3%
2%
1%
Italy
All levels of education
Tertiary education
Fig 34. ENROLMENT RATE (2016)
% OF AGE CATEGORY
Graph 3. Dépenses annuelles totales par élève/étudiant (2015)
Graph 4. Taux de scolarisation (2016)
Graph 5. Jeunes ayant quitté prématurément l'éducation et la formation
Ireland
Netherlands
Sweden
Germany
Austria
Belgium
Finland
France
Japan
Japan
Japan*
Spain
Italy
Poland
UnitedStates
UnitedStates
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Belgium
France
Germany
Austria
Ireland
Poland
Sweden
Italy
Spain
Finland
Netherlands
France
Finland
Spain
Poland
Belgium
Germany
Austria
SwedenNetherlands
Ireland
Italy
50%
40%
30%
20%
10%
0%
UnitedStates
25%
20%
15%
10%
5%
UnitedKingdom
UnitedKingdom
110%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UnitedKingdom
3-4 years 5-14 years 15-19 years
* Data for 2014 for the 15- to 19-year-old group
Source: OECD, Education at a Glance, 2018
39
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA
40. Fig 35. EARLY LEAVERS FROM EDUCATION AND TRAINING
% OF 18- TO 24-YEAR-OLDS
Source: Eurostat
Graph 7. Niveau de culture scientifique des élèves de 15 ans (2015)
Graph 6. Niveau de performance des élèves de 15 ans (2015)
Graph 5. Jeunes ayant quitté prématurément l'éducation et la formation
Japan*
Japan
UnitedStates
UnitedStates
Belgium
Belgium
France
Germany
Austria
Austria
Ireland
Ireland
Poland
Poland
Sweden
Sweden
Italy
Spain
Spain
Finland
Finland
Netherlands
UnitedKingdom
France
France
Finland
Finland
Spain
Spain
Poland
Poland
Belgium
Belgium
Germany
Germany
Austria
Austria
Sweden
Sweden
Netherlands
Netherlands
Ireland
Ireland
UnitedStates
France
Germany
Japan
Italy
Netherlands
Italy
Italy
25%
20%
15%
10%
5%
0%
540
520
500
480
460
UnitedKingdom
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UnitedKingdom
UnitedKingdom
EU-28
Japan
Finland
United Kingdom
Germany
Netherlands
Ireland
Belgium
Poland
United States
Austria
France
Sweden
Spain
EU-28
4%
3%
2%
1%
0%
-1%
2012 2017
Fig36.PERFORMANCELEVELSOF15-YEAR-OLDPUPILS(2015)
RANKINGSINDIMINISHINGORDEROFMEANSCORE
Source: OECD 2016, PISA results 2015 (Volume I)Graph 7. Niveau de culture scientifique des élèves de 15 ans (2015)
Graph 6. Niveau de performance des élèves de 15 ans (2015)
Graph 8. Diplômés de l'enseignement supérieur (2017)
Belgium
Belgium
France
Germany
Austria
Austria
Ireland
Ireland
Poland
Poland
Sweden
Sweden
Italy
Spain
Spain
Finland
Finland
Netherlands
UnitedKingdom
UnitedStates
France
Germany
Japan
Italy
Netherlands
0% 10% 20% 30% 40% 50% 60%
Ireland
Netherlands
Spain
Finland
Austria
Germany
Sweden
UnitedStates
Japan
Belgium
Italy
Poland
France
70%
60%
50%
40%
30%
20%
10%
0%
UnitedKingdom
20%
15%
10%
5%
0%
540
520
500
480
460
UnitedKingdom
EU-28
Japan
Finland
United Kingdom
Germany
Netherlands
Ireland
Belgium
Poland
United States
Austria
France
Sweden
Spain
Italy
EU-23*
Mean score Science Reading Mathematics
Fig37.SCIENTIFICLITERACYOF15-YEAR-OLDSTUDENTS(2015)
INDESCENDINGORDEROFMEANSCORE(INPARENTHESES)-%OFPUPILSRANKEDBYLEVEL*
Source: OECD 2016, PISA results 2015 (Volume I)
Graph 7. Niveau de culture scientifique des élèves de 15 ans (2015)
Graph 6. Niveau de performance des élèves de 15 ans (2015)
Graph 5. Jeunes ayant quitté prématurément l'éducation et la formation
Graph 8. Diplômés de l'enseignement supérieur (2017)
Belgium
Belgium
France
Germany
Austria
Austria
Ireland
Ireland
Poland
Poland
Sweden
Sweden
Italy
Spain
Spain
Finland
Finland
Netherlands
UnitedKingdom
UnitedStates
France
Germany
Japan
Italy
Netherlands
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Ireland
erlands
Spain
inland
Austria
rmany
weden
States
Japan
elgium
Italy
oland
France
70%
60%
50%
40%
30%
20%
10%
0%
ngdom
25%
20%
15%
10%
5%
0%
540
520
500
480
460
UnitedKingdom
EU-28
Japan
Finland
United Kingdom
Germany
Netherlands
Ireland
Belgium
Poland
United States
Austria
France
Sweden
Spain
Italy
U-23*
Level 1 Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
40
41. As soon as it was formed in 2017,
the French government announced
a reform of the school system, with
the intention of creating “schools that
build confidence”. The reform aims
to strengthen primary and secondary
schooling, notably by giving greater
freedom to local stakeholders.
At primary level, first- and second-
year class sizes in priority education
networks (“REP” and “REP+”) will
have been reduced to a maximum
of 12 children per class by the start of
the new school year in 2019. The aim
is to ensure that children acquire basic
skills (literacy, numeracy and respect
for others) from the outset of their
primary education. School timetables
can also be decided locally.
At secondary level, a homework
program has been launched, providing
free academic support outside of school
hours. Teaching staff have also been
given greater freedom to organize their
teaching, and bilingual classes have
been reinstated.
Source: www.gouvernement.fr/action/ecole-de-la-confiance
Schools that build confidence
On April 27, 2018, the Minister for
Labor presented the “Freedom to
choose a professional future” bill to
the Council of Ministers. The bill was
passed by the National Assembly
at first reading on June 19, 2018.
It enshrines some of the principles laid
down in nationwide cross-industry
agreements signed in February 2018.
As regards vocational training and
apprenticeships, the new law has twin
aims: to invest in training and to give
every person the means and the
freedom to choose their professional
future.
Regarding vocational training, the key
aspects of the reform are as follows:
- The individual training account will
be transformed so that credits are
available in euros (instead of in hours,
as previously). All employees will be
credited with €500 a year (capped at
€5,000 over 10 years), increasing to
€800 (capped at €8,000) for those
with no qualifications.
- Access to training will be facilitated
for jobseekers through personalized
training paths.
- Training plans for microbusinesses
and SMEs will be financed through
a solidarity-based funding system
in partnership with large corporates.
- A single contribution to the cost
of vocational training will be created
to simplify the current system.
Regarding apprenticeships, the key
aspects of the reform are as follows:
- Apprenticeship pay for 16- to
20-year-olds will increase by €35 net
per month (to €715 net per month),
and apprentices aged 18 and over will
receive a €500 contribution to the cost
of obtaining their driver’s license.
- Information about the quality of
apprenticeship training will be
made transparent: post-
apprenticeship employment rates,
achievement of target qualifications,
pay levels in target occupations, etc.
- The year’s training at an apprentice
training center will be guaranteed
even if the employment contract is
interrupted.
- The age limit for apprenticeship
training will rise from 26 to 30.
- All work-study contracts will be
funded.
Source: www.gouvernement.fr/action/transformation-de-l-
apprentissage-de-la-formation-professionnelle-et-de-l-
assurance-chomage
Transforming apprenticeships
and vocational training
41
FRANCE ATTRACTIVENESS SCOREBOARD. ATTRACTIVENESS CRITERIA