Foreign investors snub France, eye UK amid political uncertainty

PARIS — Foreign investors in France are eyeing the U.K. as a more attractive destination amid Paris’ political crisis.

A majority of foreign investors consider that France is becoming a less attractive investment destination since the political crisis that started last summer, when French President Emmanuel Macron called a snap election, according to a survey published by consultancy EY on Tuesday.

Half of the 200 surveyed executives from 25 countries polled last month said they have delayed their investment plans in France, citing uncertainty regarding the fate of Macron’s pro-business reforms and the “difficulty to build business plans.”

However, no company has so far changed its investment plans, according to the survey.

In a bid to rein in the country’s massive deficit, the government led by Michel Barnier is planning massive spending cuts and tax hikes for companies, threatening the future of Macron’s reforms.

“The U.K., could be the first beneficiary of this ‘French panne,'” the report says, noting that many executives believe the U.K. has become more attractive over the past six months.

The U.K. ranked number one for the first 18 years in the annual EY survey, which is published every year in June. Things changed in 2019, when France took its place amid post-Brexit uncertainty.

The results released on Tuesday are from a “special edition” of the survey that focused on France given the political and economic uncertainty in the country.

Foreign executives consider that Germany is still less attractive than France, the survey shows.