Foreign investment in France to hit €4bn in 2022

17 Jan 2022

French President Emmanuel Macron is scheduled to unveil 21 new foreign investment projects in the country together with a booming economy, three months ahead of the presidential election.

As part of a visit to Alsace, Macron will announce a €300 million industrial project by German chemical company BASF, one of 21 new initiatives valued at €4 billion and 10,000 jobs within efforts to attract foreign investors.

In addition, U.S. drug manufacturer Pfizer announced a €520 million investment in France, it was revealed on Monday, Reuters reports.

As the election looms, the president’s aides are eager to focus on the economy and the strong recovery from the pandemic and move the debate away from immigration and law-and-order issues.

"This is the result of all the reforms that were carried out since the start of the mandate," a presidential aide told reporters.

"Three months before an election, we could have expected investors to be in wait-and-see mode because of the uncertainty of an election. Instead, we see very strong confidence from foreign investors in the president's economic policy," he said.

Over the past four years, Macron has initiated a series of supply-side economic reforms designed to bolster competitiveness, slash taxes on investors and relax labour market regulations.

According to critics, however, Macron has acted as "president of the rich,” cutting welfare benefits for some of the lowest-income citizens.

Yet three months before the election in April economic indicators show France’s economy is flourishing, with 6.7% growth expected in 2021, and the country is moving nearer to pre-pandemic levels than any other G7 country except the U.S.

Indeed, this was highlighted by economist Paul Krugman in the New York Times: "In fact, among major advanced economies, the star performer of the pandemic era, arguably, is … France.”