In 2005, United States direct investment in France created or maintained 8,756 jobs, a one-year increase of 9.4 percent, while overall incoming foreign direct investment increased by 12.4 percent compared with 2004, with a record level of 664 projects creating or safeguarding 33,296 jobs, according to Invest in France Agency (IFA).

As in previous years, the United States contributed the largest single-country share of foreign investment to France, accounting for 29 percent of all jobs created. Germany ranked No. 2 with a share of 20.1 percent, while the U.K. ranked No. 3, generating 8.6 percent of jobs created.

“The 2005 results once again demonstrate the attractiveness of France as an investment location,” said Clara Gaymard, president of IFA. “In a difficult and highly competitive international context, all indicators confirm international investors’ confidence in the country. Among China, the United States and Great Britain, France remains a favored destination as one of the great competitors in the global investment market.”

Historically, there has been a steady growth trend in the shared services, which accounted for no more than 10 percent of jobs created in 1994. This trend continued in 2005, with substantial projects particularly in the distribution/logistics and retail sectors. Two other tendencies were noteworthy in 2005: the growth in high-tech sectors and the increased share of business expansions, reflecting foreign investors’ confidence in their future in France.

With $51 billion in FDI in 2005, France remains among the top four destinations, behind Great Britain (which enjoyed an exceptional score because of a major merger in the energy sector), China and the United States.

According to a study by Thomson Financial, foreign companies acquired 421 French firms in 2005, for a total of $47 billion. During the past five years, almost 1,900 French companies have been affected by these acquisitions.

Since 2004, the French government has implemented an ongoing series of reforms making it easier for international companies to succeed in the world’s fifth-largest economy. The most recent set of reforms included dramatically increased research and development tax breaks, making Europe’s most aggressive tax credit system even more competitive, according to IFA.

The United States and France have a close and longstanding business partnership. The United States is the leading foreign investor in France, with corporate investments valued at $171 billion supporting almost 550,000 French jobs, while France is the second-largest investor in the United States, with corporate investments valued at $43.9 billion supporting almost 600,000 U.S. jobs.

Approximately $1 billion in commercial transactions take place daily between France and the United States.

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