The law of modernization of the economy is the latest step in the series of economic reforms launched by the French government in the spring of 2007.
This law stems from the law ratified on August 21, 2007, to improve purchasing power, employment and the business environment. The law of modernization of the economy focuses on invigorating the French economy. It fires up the engines on an open-market economy:
- encourages entrepreneurs;
- stimulates competition;
- increases the country's economic attractiveness;
- encourages financing for the economy
With this new law, France will be able to strengthen its place as the most competitive country in Europe as a choice for business locations (KPMG, Competitive Alternatives 2008).
Pace PLC reports French success
Pace, the leading independent developer of digital TV technologies for the global payTV industry earlier profit much earlier than expected from its recently acquired French set-top box operation.
When Pace PLC, the Leeds-based worldwide digital TV technology company bought the French set-top operation of Philips this year, the company predicted that it would take at least until the end of 2008 before the French business would turn a profit.
When Pace came to release its first half figures in July, the company was pleased to report that revenue was up and instead of the predicted loss, the French division contributed almost a fifth of the group's total profit before tax. Pace France had revenues of £75.4m, with profit before tax of £2.1m on volumes of 1.4m set-top boxes (for the period 21 April to 30 June 2008).
Commented Pace: "The Board is delighted with the Group's progress and achievements to date with Pace France."
A study conducted by KPMG places France at the forefront in Europe for setting up a business cost-effectively.
According to the study by KPMG for Paris-Ile de France Capitale Economique in 9 countries, 136 cities and 17 sectors, France is the most cost-competitive location for companies in Europe and the fourth largest in the world, behind Canada, USA and Australia.
France is ranked first among European countries and the 4th largest in the world for industrial production, manufacturing software and business services.
In the area of research and development (R&D), France is placed first among European countries, tied with the USA. Tax breaks available for R&D, land acquisition, industrial investment and transport are among the most favorable advantages for France.
As for the cost of labor, France is also considered to be the most competitive country in Europe.
Finally, Paris is also ranked first among European cities for attracting foreign companies, increasing even further its lead on London and Frankfurt.
The government remains focused on strengthening France’s attractiveness for foreign companies, particularly through the Law on the Modernization of the Economy (LME). A business tax reform is under consideration which could make France even more attractive for businesses.
UK businesses with connections to France flocked to the worldwide home of cricket, the MCC's Lord's Cricket Ground in the heart of London, to meet Invest in France and famous cricketing celebrities
More than 150 senior executives from British companies, along with representatives from influential think tanks, the media and public life in the
And to echo the new found spirit of entente formidable, which swept the
Lord’s Cricket Ground is known worldwide in the countries where the game of cricket is played as its spiritual home. Invest in
Strengthening the attractiveness of France
The Minister of Economy, Industry and Employment Christine Lagarde introduced to the Council of Ministers this morning a strategy for enhancing the attractiveness of France.
In addition to the structural reform programs carried out by the government, substantive work has been contracted to design and implement targeted measures intended to make France more attractive: monitoring provided by the Invest in France Agency (IFA) identifies one hundred concrete measures, including the encouragement of high level of "impatriate" venue, welcoming students and foreign researchers or economic environment and business taxation.
In addition, two recent reforms contribute to further enhance the attractiveness of France. The first is a new research tax credit device, in force since January 2008. With rising rates of intervention, simpler and more legible rules, the new system is more favorable of OECD countries. France thus provides a major opportunity to promote and sustain the facility of research centers and business development on its territory.
The second progress factor is a bill to modernize the economy, currently under discussion in Parliament. It includes a specific part of measures to attract talent, ideas and capital for growth and employment.
For more information, please visit the Prime Minister’s website.
- The best research tax credit in Europe
- Recommend to the Government some Measures to Boost the Attractiveness of France
Three large markets at the heart of the European market, the No. 1 largest global market.
Three attractive countries for international investments - France ranks 3rd globally with $123.6 billion of foreign direct investment in 2007 (according to UNCTAD) behind the United Kingdom ($171.1 billion) and ahead of Germany (8th rank with $44.8 billion)
Among these three markets thrives strong competition to attract foreign investors. France boasts continuing significant and numerous advantages, which it continues to build on, especially in the areas of innovation and attracting talent.
HSBC Business TV features Invest in France
The banking group's webcasting service, HSBC Business TV, asks Invest in France to explain the attractiveness of France as a business investment destination
Innovation in France: decisive assets
France is well positioned to be one of the most dynamic countries in terms of research and development (R&D) in coming years.
Innovation is a longstanding French tradition – and France has a significant scientific culture. For example, among the 44 Fields medal winners rewarding the work of young mathematicians, France placed second in the final standings (nine medals, including one in 2006) after the United States (13).
Today, within the context of the globalisation of research and international competition, France is an attractive country with decisive advantages for establishments R&D activities: high quality scientific manpower, more autonomously reformed universities and renowned research teams, competitive clusters connecting companies and research centres, and competitive business costs.
- Innovation in France: decisive assets [pdf - 415 Ko]
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Caroline de CLAUZADE
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