Why France Remains a Prime Destination for U.S. Investors
- clara7139
- May 5
- 4 min read
According to the 25th annual barometer from the American Chamber of Commerce in France and consulting firm Bain & Company (AmCham-Bain), published on March 5, 2025, the morale of American investors in France significantly declined in 2024, as did their perception of the country's attractiveness as an investment destination.
"The 2025 barometer reflects a certain disconnect, driven by political instability, economic pessimism, and persistent structural barriers," summarized Marc-André Kamel, Vice President of AmCham France and Senior Partner at Bain & Company.
Still, he emphasized that France's core strengths as an investment destination remain intact, despite ongoing concerns over the social climate, political landscape, and broader economic context.
A key nuance worth noting: the barometer’s results are based on responses from 151 U.S. companies representing €100 billion in revenue in France, collected between December 2024 and January, 2025 – a period marked by political transitions in France with the formation of François Bayrou's government, and just before Donald Trump's inauguration in the U.S. This timing offers important context when interpreting the results.
Indeed, having just passed the symbolic milestone of 100 days, the 47th U.S. president has taken the country by storm. As a recent HuffPost article put it, '100 days felt like 100 years for diplomats,' making France and Europe seem like a haven of stability.
Is It Europe's Moment?
While the new protectionist U.S. customs policies are expected to create economic headwinds – the International Monetary Fund has revised global growth forecasts downward to 2.8% for 2025 and 3% for 2026 – it could encourage some U.S. companies to seek stability and competitiveness abroad, particularly in Europe. France, one of the main gateways to the EU’s 450-million-consumer market, stands out as a compelling option.
“Europe’s time,” said Christine Lagarde, President of the European Central Bank, in a recent CNBC interview, when asked whether U.S. tariffs had changed her outlook on Europe's economic trajectory:
"We were at a point where past shocks – from the pandemic to the energy crisis and high inflation – were really starting to fade, and disinflation was clearly following the path we had anticipated. Then came a new wave of disruptions:
U.S. tariffs
Escalating defense efforts in Europe, particularly with Germany deciding to significantly increase its military commitment
The direct result of the tariff announcements and developments: the structural reforms that Europe had long discussed, outlined in various reports, and that are now seen as a priority across the continent."
She concluded: "Time will tell whether this is truly Europe’s 'hour’ - which I feel very strongly today – and whether it will lead to a new Europe. It’s difficult, but every time we’ve faced a major crisis, Europeans have rolled up their sleeves, gotten back on their feet, and delivered something completely unexpected. The EU €1 trillion climate investment plan, currently being deployed through joint borrowing, is something we would never have dreamed of."
The U.S. Remains the number one investor in France
France continues to be a leading destination for foreign investment.
In its latest annual report, Business France noted a 7% drop in foreign investment projects- unsurprising given the global slowdown and heightened geopolitical tensions. Still, this is relatively modest compared to a 13% global drop in greenfield investments (new projects) and a 23% drop in Europe, according to the United Nations Conference on Trade and Development (UNCTAD).
Importantly, the number of projects in France is still 25% higher than the average of the past 10 years, and among the highest ever, following the post-COVID rebound of 2022 and 2023.
· France remains highly attractive to foreign investors, especially from the U.S., which remains the top investor with 252 investment projects completed in 2024.
· Over 25% of the companies that chose to invest in France in 2024 were first-time investments, while the rest were expansions or reinvestments, reflecting investor satisfaction with their current operations in France.
· "These strong results, despite geopolitical uncertainty, are thanks to France’s fundamental advantages and the reforms that continue to strengthen them year after year - such as cuts to corporate tax rates, labor law reforms, and the streamlining of industrial setup procedures under the Green Industry Law," the Business France report highlights.
Considering expanding to France or Europe?
At CMK Bridge, we support international businesses at every stage of their market entry - from market research and local insights to setting up operations and navigating local systems. Contact us to find out how we can facilitate your success in France.
Resources:
Business France – 2024 Annual Report – Foreign Investment in France.
Le Grand Continent – The Real Role of the United States in European Construction.
CNBC – Christine Lagarde, President of the European Central Bank, discusses how U.S. tariffs have impacted Europe's economic outlook, expectations for trade and development in Europe, and the U.S., and more