France has attracted €30.4 billion in investment across 150 projects, even as political paralysis and budget disputes cast uncertainty over its fiscal future.
Reuters reports that the finance ministry confirmed €9.2 billion in new corporate pledges on Monday ahead of the “Choose France” summit, a government-led initiative designed to showcase the country’s business credentials to global and local investors.
With opposition parties challenging tax reforms and lawmakers pushing for fiscal tightening, the government is using this influx of capital to reinforce its message that France remains a stable and attractive place to do business.
Sectors commit capital despite rising tax pressures
Companies from energy, healthcare, and agri-food sectors are among the latest to back investment plans in France.
These commitments add to the €21.2 billion previously announced over the last 12 months.
The government-organised “Choose France” summit, based on President Emmanuel Macron’s annual meeting with corporate leaders, served as the backdrop for unveiling the latest inflows.
Despite heightened political tension, the figures reflect sustained confidence from both French and international firms.
The new investment comes at a time when France’s parliament remains divided and lawmakers are pushing for tax increases to shrink a widening deficit.
Businesses are particularly concerned by the lower-house proposals to raise business taxes in the 2026 budget. These measures are currently among the highest in developed economies.
However, many firms argue that the unpredictable tax climate is complicating long-term decisions.
Macron’s reforms meet resistance in hung parliament
Since the snap election last year, Macron’s pro-business agenda has slowed.
With no parliamentary majority, his administration is struggling to push through supply-side reforms that were designed to boost competitiveness.
Political deadlock has made it difficult to offer policy stability, particularly around taxation.
Although the government has tried to protect corporate interests, lawmakers have introduced additional tax hikes beyond those proposed in the draft budget.
Finance Minister Roland Lescure has warned against relying too heavily on taxes to repair public finances.
Speaking to Le Figaro, he stated that excessive tax increases could suppress economic growth and jobs.
He also promised that the government would work to ensure the final budget version supported continued business activity.
The Senate is expected to review the tax amendments in the coming weeks.
Its decisions could ease or escalate tensions between the government and corporate leaders who are seeking clarity and consistency in fiscal policy.
Positive growth offers government room to reassure investors
Despite the fiscal strain and political challenges, France’s economic performance in the third quarter provided a surprising lift.
The country recorded a 0.5% rise in GDP, outperforming Germany and Italy.
This growth was mainly driven by a surge in exports and business investment, showing signs of resilience in key sectors.
The economic data gives the government a stronger hand in its negotiations with both investors and parliament.
Officials are using the numbers to demonstrate that France’s fundamentals remain solid, even in a difficult political environment.
The strong showing offers some reassurance to businesses committing large-scale investments across industries.
Jean-Paul Agon, Chairman of L’Oréal, addressed a conference last week, remarking that the current conditions require perseverance and determination to move forward.
His comments captured the cautious optimism many business leaders appear to share about France’s long-term outlook.
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