INVEST IN FRANCE 2014
1
w
InvestIn France
2014
INV
EST
IN F
RAN
CE32
France: the Gateway to a larGe and GrowInG market
INV
EST
IN F
RAN
CE
3
+15%+25%+14%
+39%
+4%+9%
European Union: #1 Market in the world
500m+ consumers and €12 600+bn GDP
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE54 France at the heart
of a 500m+ consumer market
+5.7 %
+6.5 %-2.2 %
+2.5 %
+0.6 %
at the centre of the emea area: 32% of world GdP
AMERICAS EURoPE, MIDDlE EAST, AFRICA (EMEA)
ASIA
€ 18,500+bn € 17,300+bn € 14,700+bn
€ 2.03bn
€ 1.93bn€ 2.67bn
€ 1.57bn
€ 1.03bn
1. Eurostat, 2012 | 2. United Nations, Population Division, Medium Fertility | 3. CEPII, The Great Shift
Current GDP in billion of euros1
Population’s Growth2010-20252
Population’s Growth2025-20503
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE76 Paris region, #1 economic
area in emea France is open for business
la Défense
#1 business district
in EMEA1
Paris region
#6in the world
for FDI2
Paris
#3 in the world
for HQ
la Défense
1,500 Head Quarters
15 of the top 50
world companies
over the past 10 years
6,500foreign investments
300,000 jobs created1
Average of
13 foreign investment decisions each week2
35% of GDP Inward FDI Stock3
#1 in Europe for foreign investment in the industrial sector projects4
#1 for US job-creating foreign investment in Europe5
2 million jobs in foreign companies6
#1world tourist destination
83m in 2013
1. Invest in France Agency | 2. Invest in France Agency, Job-creating foreign investment in France | 3. UNCTAD, 2013 | 4. E&Y, Baromètre de l’attractivité de la France 2013 | 5. E&Y, Baromètre de l’attractivité de la France 2013 | 6. INSEE1. INSEE | 2. KPMG, Global Cities Investment Monitor 2013, FDI 2008/2012
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE98 world-renowned infrastructure
Haropa #5 largest port complex in Northern Europe, linking the ports of Paris, Rouen and le Havre: a major gateway to the European hinterland
le Bourget airport
Europe’s leading business airport2
Roissy-CDG Airport#1 freight airport in Europe
#2 for passengers less than 2hr away from all major European capitals1
2012
#3 high speed train network worldwide
2,000+ km high speed lines
Grand Paris ExpressA € 32 billion investment
200 km of new automatic metro lines Improved services to key economic hubs and airports
Two French ports
among the top 10 European portsMarseille: #3 world oil port
International supply chain connectivity #1 in Europe3
1. ADP, 2014 | 2. ADP, 2011| 3. The 2013 ESCAP International Supply Chain Connectivity (ISCC) Index
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE1110 high quality, low carbon
& competitive electricity
least carbon intensive electricity3
GERMANY
8.60 C€/kWh
UK
11.39 C€/kWh
FINlAND FRANCE
6.79 C€/kWh 7.71 C€/kWh
SPAIN
11.65 C€/kWh
ITAlY
11.22 C€/kWh
#1 in the world for electricity
quality and availability1
#2 most competitive
electricity in Europe2
#9 most energy
competitive country worldwide1
Electricity prices for industrial consumers, 2013 (Eurostat)1. KPMG and Institut Choiseul, Global Energy Competitiveness Index, 2012 | 2. Eurostat, Electricity prices for industrial consumers | 3. EDF, Rapport annuel, mai 2012
INV
EST
IN F
RAN
CE1312
hIGhly skIlled and InnovatIve PeoPle
INV
EST
IN F
RAN
CE
13
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE1514
19
FranceGermanyItalySpain UK USA FranceGermany Spain UKUSA Italy Euroarea 15
21.7
FranceSwitzerlandGermanySouthKorea
Japan USA
12
FranceSwedenNorwayNetherlands UnitedKingdom
86
a leader in innovation supportive environment for research
#3 in the world for Science Nobel Prizes and Fields Medals3
#1 in Europe for graduates in science4
#3 for global innovatorsin the world1
More than € 5.2bnof corporate tax savings
More than 17,000 businessrecipients each year
including 2,000+ foreigncompanies
Paris Saclay #8 of MIT Technology
Review of World
Innovation Clusters
#1 in the EMEA area for fast growing startups2
1. 2012 Global Survey of R&D Tax Incentives, Deloitte
1. Thomson Reuters 2013 - number of global innovators among top 100 | 2. Deloitte Technology Fast 500 EMEA ranking 2013 - number of companies | 3. number of prizes and medals since 1990 (nobelprize.org and International Mathematical Union) | 4. Number of graduates in science per 1,000 of population aged 20-29 (2011, Eurostat)
CIRResearch tax credit:R&D spending up to
€ 100mn eligible
for a 30%research tax credit
France offers one of the most generous research tax incentives of the oECD countries1
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE1716
CloSING
THE FU
ND
ING GAPA SUPP
oRT
IVE
ECo
SYST
EM
Investing in our Future France is a startup republic
French Tech accelerators: € 215m investment
for startup mentoring
€ 20bn super-high speed internet infrastructure
investment by 2022
100% national coverage by 2022
Industrial rejuvenation compact
34 sector-based programmes DRIVERlESS VEHIClES ElECTRIC PlANES AND NExT-GENERA-
TIoN AIRCRAFT EMBEDDED SoFTwARE AND SYSTEMS HIGH-SPEED TRAIN oF THE FUTURE ENVIRoNMENTAllY FRIENDlY SHIPS RECYClING AND GREEN MATERIAlS GREEN CHEMICAlS AND BIoFUElS MEDICAl BIoTECHNoloGIES DIGITAl HEAlTH-CARE BIG DATA CloUD CoMPUTING NANo-ElECTRoNICS
Innovation 2030 - worldwide call for tender ENERGY SToRAGE RECYClING oF METAlS DEVEloP-
MENT oF MARINE RESoURCES PlANT PRoTEINS AND PlANT CHEMISTRY PERSoNAlISED MEDICINE THE SIlVER ECoNo-MY - INNoVATIoN IN THE SERVICE oF loNGEVITY BIG DATA
Investing in the Future Programme
6 strategic sectors to foster growthand employment EDUCATIoN – SUSTAINABlE DEVEloPMENT – RESEARCH – INDUSTRY & SMES – DIGITAl ECoNoMY – HEAlTH
€ 3.5bn
€ 300m
In many ways, France is now a little like the new york startup scene was a few years ago. Young and passionate people are trying to create a working and coherent ecosystem. It’s an exciting time to be part of the French ecosystem. TechCrunch3
1. French entrepreneur and businessman founder and majority shareholder of Iliad Chief Strategy officer, Illiad, Iliad in Internet and digital media: € 1.8bn (Q2, 2013, +27% vs. 2012) | 2. Destinations for private equity investment in Europe, €bn; 2007/2012 EVCA/PEREP, 2013 | 3. Techcrunch, welcome to the French Tech Ecosystem, January 2014
UnitedKingdom
FranceGermanyItaly
71.2
45.741.1
15.9
540,000 new entreprises in 2013
+27% in industry
France is the#2 destination
for private equity in Europe2
€ 3 bn/year
over the next 10 years
Private
equi
ty
Bpifrance
Clu
sters,
incubators
& ac
ce
lerators
Sup
portive regulatory
The word ‘entrepreneur’ is French; it is in our dna. we do have a strong desire to start up things, to set up business.xavier Niel1
Low tax rate on capital gains, tax relief for corporate investment venture & a very flexible framework for crowdfunding
with € 42bn funding capacity, the French state-backed
economic development bank brings together
public and private sector funds to unlock finance
for smaller businesses and support innovation
71 clusters a nurturing ecosystem bringing together startups, labs, universities and big companies
environment
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE1918 diligent and highly
skilled workforce the labour market reform
Highest productivity among large EU countries1
#2 in Europe for young graduates in science and technology2
3 French business schools
in top 10 Master degrees in management3
#4 world destination for foreign students4
Paris voted best city worldwide for students5
Highest amount of hours worked for managers & employees
among the top 3 European economies6
Significant step towards “flexisecurity” achieved with the 2013 labour Market Reformenacting a trade union and employers agreement
Several agreements reached in the automotive industry to boost the competitiveness of the two major French car-makers and different sub-contracters: salary freeze, longer working hours in exchange for a commitment to maintaining the manufacturing sites
Increased flexibility allows employers to reduce nominal wage and/or working time in exchange for a commitment to preserve jobs in cyclical downturns
Reduction in legal uncertainty in case of redundancy plans: choice for business between an agreement with trade unions or a review by labour authorities under a 21 day-fast track procedure, with shortened deadlines for appeal
Since the law was voted, the preferred option is negotiation with trade unions in 75% of cases
Towards more adaptability & predictability
1. oECD, labour productivity growth in the total economy, 2012 | 2. Eurostat, Tertiary graduates in science and technology per 1 000 inhabitants aged 20-29 years, 2010 | 3. The Financial Times, Masters in Management worldwide ranking 2013 | 4. Campus France 2013 | 5. Quacquarelli Symonds, Best Students Cities ranking 2013 | 6. Average number of hours usually worked per week by managers: 44.2 in France compared to 43.4 in United Kingdom and 43.3 in Germany. Source Eurostat 2013, (Q2-2013) / Average number of hours usually worked per week by employees : 36.2 in France compared to 36.2 in United Kingdom and 34.4 in Germany. Source Eurostat 2013, (Q2-2013)
INV
EST
IN F
RAN
CE2120
commItted to the Fundamental reForms our economy needs
INV
EST
IN F
RAN
CE
21
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE2322 French economy: back on track a strong commitment
to fiscal prudence
UK
France
Netherlands
Germany
Italy
Spain
104
102
100
98
96
94
92
90Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13
French bonds are among the most attractive in Europe (10 y)
French GDP back to its pre-crisis level
To restore the public finances is imperative for France, but it is also a European commitment. François Hollande, September 2012
In 2014, the issue for France is not merely to return to growth, as it has already begun to recover. The issue is rather for growth to be as strong as possible. François Hollande, January 2014
In 2013 the effort was two thirds based on tax increases and one third based on public spending cuts . we have said that in 2014 the proportion would be inverted. we are going beyond that. Pierre Moscovici, French Minister of Finance, September 2013
From 2015 onwards, deficit reduction will rest only on cuts in public spending
The debt-to-GDP ratio will decline from 2015 onwards
The rate of increase of general government expenditure consistently fell1
1. General government expenditure, rate of increase, yoy volume.
2.2%
At least
€ 50bnsavings between
2015 and 2017
1.7% 1%
2003/2006 2013 2014 20152007/2011 2012/2014
MORE TAX
LEssspEnding
2005
Public deficit Debt/GDP excluding eurozone support
2007 2009 2011 2013 2015 2017
-2,9 -2,3 -2,7 -3,3
-7,5 -7,1
-5,3 -4,8-4,1 -3,6
-2,8-1,7 -1,2
60
65
70
75
80
85
90
9591,8
UK
France
Netherlands
Germany
Spain
Italy
1
2
3
4
5
6
7
8
201420132012201120102009
LEss spEnding
LEssspEnding
MORE TAX
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE2524 structural reforms the responsibility Pact
Nov. 2012
May 2013
July 2013 Oct. 2013
Spring 2014
Jan. 2014
Dec. 2013
Towards growth and jobs through justice and efficiency
A new comprehensive framework to ease the burden on business allowing them to unleash their potential
Banking SectorReform
Competitiveness Compact
labour Market Reform
Pension System Reform
Tax review
Vocational training Reform
Responsibility pact
€ 30bn tax-cuts
for businesses
Tax streamlining
we will only achieve stronger growth if everyone acts, including companies, as there will be no job creation in the long run without them.“
”we will continue to reduce labour costs by 2017 […]: € 30 billion tax cuts
“”François Hollande, January 2014
This is the reason why I proposed the
responsibility Pact.
The way it works is pretty straightforward: reducing corporate taxes and hindrances to business activities. In return, the Pact will lead to more people hired and more social dialogue.
François Hollande, January 2014
Reducing the regulatory
burden
INV
EST
IN F
RAN
CE
INV
EST
IN F
RAN
CE2726
I have made this commitment […]: tax stability must be the rule, simplicity must be the French administration’s everyday behaviour and attractiveness must be the highest priorityFrançois Hollande, December 2013
cutting red tapeReducing the regulatory burden
Everything should be made easier for businesses. It is a condition for us to be more attractive, more modern, flexible François Hollande, January 2014
“Tell us once”Before 2017, the 100 most requested information from companies will be handed over to the administration only once
“Silence means consent” principle
Chaired by Thierry Mandon, Member of Parliament, and former Unibail-Rodamco CEo Guillaume Poitrinal
Pinpointing reforms to ease the administrative burden on businesses
Made of business representatives and experts including representatives of French affiliates of foreign businesses
Key areas for reform
one port of call for foreign investors’ relations with the state administration
Hiring & training
people
Starting a business
Public tenders
Running your
activity
Tax obligations
Relationship with trade
unions
Import & export
Growing your
business
Building & reforming production
sites
Relations with the admi-
nistration
1. « Relation de confiance »
tax streamliningTowards a simpler, more stable tax system
our ambition: a more predictable, stable and simple tax system in order to create a thriving business environment
we are committed to paying greater attention to the real impact on the business community and to avoiding frequent changes to the tax system that could deter investment.
A commitment
The government is committed to maintaining unchanged the 5 key probusiness tax credit schemes, including the research tax credit
In January 2014 the government started an ambitious reform to streamline taxes with a simpler tax system for businesses that allows them to plan with more certainty
A “Trust and cooperation scheme”1 between tax authorities and companies is already being tested by a dozen of firms (including two international companies). In exchange for increased transparency with the tax administration, these companies benefit from more services and less controls.
The reform is on !
Simplification High level Council
€ Open for business
France
World classinfrastructure
Fundamental reforms on track
Leader in innovation
tax stability must be the rule, simplicity must be the French administration’s everyday behaviour and attractiveness must be the highest priority
François Hollande, December 2013