US firms fall out of love with France, survey says

The return to power of France’s Socialist Party in the spring of 2012 after a 17-year absence has not gone down well, it seems, with American businesses with operations in the country.

According to a recent poll of the heads of French branches of US companies, France's attractiveness as a place to do business has plummeted in the last year.

The survey, carried out by the American Chamber of Commerce in Paris along with consulting firm Bain and Company, revealed only 22 percent of the heads of the US companies in France see the country as an attractive place to do business, down from 56 percent when the same poll was carried out in 2011.

The chief reason for the steep drop it seems, can be explained by May’s presidential election when Socialist François Hollande ousted conservative Nicolas Sarkozy from the Elysée Palace.

Of the 52 leaders of French operations of US companies, 65 percent of respondents cited the election of a Socialist government as having a negative impact on attractiveness.

The US business leaders were also critical of the Socialist government’s economic policies, which include its controversial 75 percent tax rate on earnings above one million euros, According to 85 percent of respondents the policies have also had a negative or very negative impact on the attractiveness of France for foreign investors.

The poll has seemingly largely been ignored by France’s leftwing press but it has been used as ammunition by the country’s centre-right newspapers with Le Figaro acidly remarking that US investors had sent a “clear message” to Hollande.

Note EU-Digest: France and Europe need not to worry too much about the comments from the business sector. They always react to any force trying to curb their totally unrealistic tax benefits and ability to exploit corporate loopholes to the fullest. 

Read More: US firms fall out of love with France, survey says - FRANCE / BUSINESS - FRANCE 24