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Latest update: 22/12/2012
- business - France
US firms fall out of love with France, survey says
The attractiveness of France as a place to do business has plummeted in the eyes of the French divisions of US businesses, a new survey suggested this week. The May 2012 election of a Socialist government was cited as the main reason for the drop.
By FRANCE 24 (text)
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.
Some 54 percent of those polled believed the financial outlook in their sector had deteriorated while 39 percent of the business leaders said they believed their headquarters in the United States had a negative perception of France, compared with 15 percent in 2011 and 9 percent in 2010.
The American Chamber of Commerce wants France to take action to improve the outlook for investors.
“What is important today is to know how France is going to react to showcase its strengths in innovation and competitiveness in order to attract new foreign investors,” said Marc-Andre Kamel, a member of the board of directors at the American Chamber of Commerce in Paris.
There was some good news for Hollande and his government though: 73 percent of the US business leaders said they were in favour of the government’s 20-billion-euro initiative that would lower their tax charges to employ workers.
(FRANCE 24 with wires)
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(15) Reactions
To be honest, Europe (France
To be honest, Europe (France included) is sick and tired of American companies coming here to Europe and NOT paying their taxes. Look at Starbucks and Amazon, to name just 2!!
The USA doesn't find France attractive to do business anymore? Well, we don't want American companies over here who aren't prepared to pay their taxes. The USA can get lost!!
not a bad idea instead of
not a bad idea instead of large company's employing many people, people would
make their own smaller independent business, this way they would not be dependent on large firms for work. there would always be work make your own with your own business.
looking at the french economy
looking at the french economy it may be that the government is trying to generate a mass amount of little business and jobs rather than rely on larger
company't to employ the mass's in this way they will always have employment
and not be at the mercy of a large company or firm it kind of makes sense if
everyone push's the same way this way unions can be welcomed and not swarted
by government or large company's who threaten employees with closing if they
for a union for representation it would broaden the tax base in stead of a
large company doing say wood work we would have a combine of small ones doing
wood working projects that would require large amounts of workers and after
the work is done they would have a smaller company to fall back on. constant
work maybe
Tax evasion and anti-Euro or
Tax evasion and anti-Euro or anti-French sentiment is completely off-base. French taxes and government red tape simply diminish the return on any investment to the point where it is just plain stupid to even try to do anything business-wise in France. For the most part Americans do not pay much attention to France, or know much about French society. There has never been a love affair to fall out of. While there is a huge difference between Tax evasion and Tax avoidance. Given the opportunity would you choose to pay or choose to avoid paying grossly higher taxes? Would you choose to make money or would you choose to work hard only to lose money? Do the French Socialists have any idea how business and a global economy even works? Or do they believe that if you own a business you are rich and the rich simply must pay! It does appear that that's about as far as the Socialist grey cells go on this topic. Whatever, France has reached a point where "work-too-little, spend too-much" doesn't work any more and the longer it takes to institute meaningful reform, the higher the price will be to pay.
This article in its own sense
This article in its own sense does provide no true justice to France at all. Look whom has provided the results itself?
American Chamber of Commerce in Paris along with consulting firm Bain and Company
Since when is the American Chamber of Commerce an icon for anyone other than greedy power hungry businesses wanting to destroy France?
American Chamber of Commerce and Bain want nothing other than the demise of the work force in that country too.
Next time for an article, use a source whom is not one sided?
As for France and french made products, Americans consumers are far more open minded to its qualities than the US businesses importing its goods.
It not just US businesses
It not just US businesses that are taking their business elsewhere, the level of anti-European and particularly anti-French sentiment in the US seems to be strongly on the rise...
It not just US businesses
It not just US businesses that are taking their business elsewhere, the level of anti-European and particularly anti-French sentiment in the US seems to be strongly on the rise.
Obviously, the reason
Obviously, the reason France's growth rate has barely managed to exceed Greece and Portugal in the past decade, is because taxes are too low and the government too small. Who else but the Socialists party could fantasize that a mandatory 35 hour work week would lower unemployment, ingenious! How's that employment rate? Too high? No problem.
Remedy: Less work, more taxes, more government to run everything.
Soon, everyone can work for the government and eventually the country will be as prosperous as Haiti.
What a Pity.
Why would anyone want to do
Why would anyone want to do business with tax evading companies from the US
As an American businessman
As an American businessman who recently spent the 18 months in France, I will no longer even consider doing business in France. The taxes are enough to destroy any incentive. While the government takes forever to process even the most simple request. I feel so sorry for all of the honest, hardworking, and enterprising citizens of France who must cope with this nightmare. The only way to improve this situation is to cut spending and cut taxes. Neither of which the current government shows any sign of doing.