Overview

• France led Europe in foreign direct investment in 2024 with 1,025 projects, outperforming the UK and Germany, according to the 2025 EY Barometer.
• Job creation from foreign investments in France fell nearly 30% from 2023, while industrial investment projects dropped by 22%.
• High labor costs and political uncertainty, including the dissolution of the National Assembly in 2024, have dampened investor confidence in France.
• Spain and Poland saw significant growth in foreign projects, with increases of 15% and 13% respectively, driven by lower labor costs and streamlined processes.
• Europe-wide foreign investment projects reached their lowest level in a decade, as U.S. fiscal incentives like the Inflation Reduction Act redirected capital flows.