France’s Finance Minister: Foreign Investments Continue to Support the Economy
Bruno Le Maire (French finance minister) said the government would not pull back from economic reforms, which helped make 2017 the best year for foreign corporate investment in France since 2001. According to the politician, nearly 1.300 foreign investments helped create 33.489 jobs last year, while total foreign investment rose 16% from 2016.
The French economy posted its best annual growth since 2011 last year, expanding 2%, and persistently high unemployment has begun to fall. US and German companies were the main source of investment, with the number of US investments up 26% for the year, against a 9% increase from Germany. According to the France Invest association data, French firms saw a record level of equity inflows last year with 14.3 billion euros ($17.6 billion) of venture capital investment, which represents the industry.
France’s President Emmanuel Macron aims to modernize the economy and to boost incentives for entrepreneurs to launch start-ups and has cut tax on all capital income to a flat 30%. But still, Macron faces a growing challenge from unions in a country where tensions with labor have long kept governments from being bolder in their reforms.