France Remains Top European Destination for Foreign Investment in 2026 Despite Challenges

For the seventh consecutive year, France leads Europe in attracting foreign investments, with 852 projects recorded in 2026, according to EY's annual attractiveness barometer released on May 21. However, the country faces a notable 17% decline in investment performance, mirroring broader global trade tensions and geopolitical uncertainties that also contributed to a 7% drop in international investments across Europe.

Despite this downturn, France generated nearly 27,921 jobs from foreign investment projects, experiencing only a 4% decline in job creation, which is significantly better than the European average drop of 25%. The strongest sectors include logistics, defense, low-carbon energy, and artificial intelligence, with Amazon alone announcing nearly 5,000 new jobs. Noteworthy contributions come from the AI startup Anthropic establishing a Paris office, and Manpower launching an AI hub in La Défense.

Conversely, foreign investments in R&D centers plummeted by 47%, heavily affecting industries like electronics (-53%), energy (-57%), and chemicals (-83%). Investments in industrial projects also declined by 15%. Additionally, executive confidence shows signs of waning, with only 57% planning further investments in France over the next year, down from previous years.

Despite hurdles, 38% of executives still consider France Europe’s most attractive country for investment, highlighting strengths such as access to green energy (79%), quality infrastructure (66%), and a skilled workforce (63%). Concerns remain over economic conditions (36%), political stability (33%), and tax competitiveness (30%). These dynamics underline France's complex but resilient role in the shifting landscape of foreign investments in 2026.