France resists better than its neighbours

What European country is best for setting up a new business? Contrary to common belief, France is the most attractive country on the Continent, according to a survey carried out by consultancy firm KPMG*, taking into account criteria as diverse as manpower, taxation, infrastructures, regulations, cost of housing, school fees, health fees… French manpower, less qualified than in Germany, the United Kingdom and the Netherlands, is the cheapest in Europe… But office rent, tax rates and the cost of telecommunications in France weigh upon the costs of setting up. France is the top European country in the domain of research and development, and the second in the world, on a par with the United States, behind Canada. The same observation can be made when it comes to large cities: Paris is the most competitive large European city. The French capital finishes 14 points ahead of Frankfurt and 22 points ahead of its long-time rival, London. Its strong sectors are the automobile, aeronautic and medical equipment industries. However, as a necessary consequence of a drop in the dollar, European countries have lost points in terms of attractiveness compared with the United States, according to the survey. And Canada and Australia, now coming behind the United States, are getting further and further ahead of Europe. Japan, number eight in the world ranking, has gained ground, thanks to moderate rate of inflation and a relatively stable rate for the yen, compared with the American dollar. France – the fourth most competitive country on the world level – is the country in Europe that has best resisted to unfavourable exchange rates.
*KPMG carried out in 2000 companies from 17 sectors of activity and established in 136 cities in 9 countries (United States, Canada, Australia, Japan, Germany, France, United Kingdom, the Netherlands, Italy).