France\\\'s latest economic policy: For a renewed attractiveness on international markets

The French economy has significant key strengths that contribute to its investment attractiveness: world-class industrial centres, powerful international companies, innovative SMEs, globally renowned scientific research and top-quality higher education and technical training. Yet it now faces the dual challenge of stimulating growth and employment in a depressed international economic environment.
In 2012, the French government embarked on economic policy reforms, which set a comprehensive goal: to boost the competitiveness of the French economy, while making France a land of innovation, and reposition French businesses on a sustainable and offensive footing in international markets.
Lower taxes, business costs, and access to better funding to support companies operating in France
In order to alleviate the burden on enterprises based in France and to support companies at every stage of their development, massive reforms have been drafted as part of the French "Pact for Growth, Competitiveness and Employment". Launched at the end of 2012, it aims at fostering a pro-growth economic environment, caring particularly for SMEs and mid-size companies. For instance, this Pact comprises a €20 billion annual reduction in labour costs to encourage investments and create jobs.
Similarly, the creation of a Public Investment Bank (BPI) in 2013 offers companies a tailored funding service thanks to a wider palette of financial instruments and advice. Through the BPI, which has funding resources of €42 billion, SMEs enjoy improved access to financial resources, in order to alleviate the pressure on their cash-flow. Around 60,000 companies benefited from such measures during the first 9 months of 2013.
Moreover, with new calls for projects, the "National Investment Program" is speeding up the development of sector-essential digital technologies. A plan to roll out very-high-speed internet throughout the country is currently being implemented as part of a public-private effort of €20 billion over a period of 10 years, to boost French industries' competitiveness.
A simpler and more stable regulatory, administrative, and tax environment to attract foreign businesses
France's Pact for Growth, Competitiveness and Employment underlines the objective of exemplary government action, particularly by consolidating the public finances, in order to provide a stable financial environment for businesses.
New procedures have been drafted to facilitate incoming of foreign talent and business visitors who contribute to the standing and vibrancy of the French economy. They include a "Talent Passport" to attract foreign talent, the alignment of the process of issuing visas to business travellers with the best practices in Europe, and the facilitation and streamlining of visa-issuing procedures for business visitors, with more partnerships with businesses and chambers of commerce been sought after by French diplomats and consulates.
Numerous measures are been put in place to simplify corporate procedures and administrative environment, including: incentives for individuals to invest in SMEs to reduce their income tax and/or wealth tax bill, measures to promote ownership and transfer of businesses (lower inheritance taxes and wealth tax, "shareholder agreements"), and greater resources allocated to business formalities centres to enable them to deal with businesspeople face to face, with a single online website for support (www.guichet-entreprises.fr).
Boosting innovation in France
Baking the Pact for Growth, the "New deal for innovation", presented at the end of 2013 by the Ministry of Production Recovery and the Ministry of Higher Education and Research, focuses on specific areas responding to the concerns and expectations of foreign investors, including improving the transfer of knowledge and technology between research and businesses, and providing an environment that will allow companies to grow and become the leaders of tomorrow. Keeping the special focus on SMEs, the government has thus called upon the newly created Public Investment Bank to operate a brand new innovation support program, aimed at encompassing innovation spending by SMEs, via the French research tax credit.
This political strategy for innovation will continue to create a fertile environment for French businesses; in 2011 already, their dynamism led France to rank 2nd in Europe and 6th worldwide for the number of patents filed.
The recent government national plans and measures for boosting the competitiveness of French businesses and fostering innovation explain the renewed attractiveness of France. Paris now ranks 4th in terms of its economic power; it is the leading metropolis and remains the most dynamic city in the Eurozone. In 2014, the country regained its position in the Top 10 most popular countries for FDI, and it came in third position at European level. The United States is leading FDI in France, but the proportion of projects initiated by emerging countries has continued to grow, with 44 countries investing in France in 2013. Japan and China respectively rank 7th and 8th in terms of investments.
France's return to the Top 10 is a sign of international investors' renewed confidence in the economic reforms begun by the government.