U.S. Investment in France Increases for Second Straight Year

PARIS, May 11 /PRNewswire/ -- In 2004, United States direct investment in France created or maintained 8,248 jobs, a 26% increase over 2003, while overall incoming foreign direct investment created or maintained 33,247 jobs, a one-year gain of 8% and a 30% increase over two years, Clara Gaymard, president of the Invest in France Agency (IFA), the worldwide economic development arm of the French government, announced today.

As in previous years, the U.S. contributed the largest single-country share of foreign investment to France, accounting for nearly 28% of jobs created or maintained. Germany ranked second with a 16.3% share while Sweden ranked third supporting 13.6% of all jobs created or maintained.

"The latest investment increases suggest our aggressive new legal reforms are succeeding in making it easier for international companies to invest and succeed in France," said Ms. Gaymard. "We couldn't be more excited that global companies continue to gravitate towards France's strengths as the world's fifth largest economy located in the middle of Europe and offering proven excellence in skills and innovation."

Hot Growth Sectors in France

The largest share of foreign investment went to the transport, warehousing, and construction/civil engineering sectors. A total of 6,026 jobs were created or maintained in these sectors, considerably more than in 2003.

The automotive sector is also a prime investment area, though the 3,057 jobs created or maintained in 2004 represented a decline from 2003, when there were a number of major acquisitions.

Electrical and electronic equipment, another important sector for investment, chalked up strong growth in jobs, with 2,755 created or maintained.

France: An Evolving Business Climate

The French government recently embarked on an ongoing series of reforms designed to make it easier for international companies to succeed there.

The reforms include a broad range of initiatives including Europe's most aggressive research and development incentives, tax-free status for research-driven startups and streamlined entry, work and tax procedures for foreign executives.

In addition, the French government recently relaxed rules governing collective dismissals and lengthened the 35-hour workweek, two structures which have often been identified by U.S. senior managers as impediments to investments in France.

The U.S. and France

The U.S. and France have a close and longstanding business partnership. The U.S. is the leading foreign investor in France, with corporate investments valued at $171 billion supporting almost 550,000 French jobs, while France is the second-largest investor in the U.S., with corporate investments valued at $43.9 billion supporting almost 600,000 American jobs.

Approximately $1 billion in commercial transactions take place between France and the U.S. every business day.

* These newly released foreign direct investment numbers only represent employment figures. The 2004 financial figures will be released this summer.

About the Invest in France Agency: The Invest in France Agency is the economic development arm of the French government responsible for promoting the $50-billion annual flow of foreign direct investment into France. Its mission is to help companies find the most profitable and competitive solution in France for their European business goals. In addition to facilitating access to financial and fiscal incentives, Invest in France provides key industry contacts, site selection studies and regulatory information and helps identify potential partners and acquisition opportunities. Services are customized, confidential and complimentary. Invest in France has 32 offices in 22 countries, including North American offices in New York, Chicago and Palo Alto. For more information, please visit http://www.investinfrance.org/ .