German Companies Envy France's 'Pro-Business Environment'... "Reversal After 10 Years"

French Investment Soars Under Macron's Pro-Business Policies
Experienced Officials Appointed and Subsidy Policies Utilized
"Roles of the Two Countries Have Reversed," Some Say

Germany, long regarded as a leading economic powerhouse and pro-business nation in Europe, is now being viewed as envious of France, according to emerging assessments. Analysts suggest that the atmosphere between the two countries has changed markedly since French President Emmanuel Macron, who took office in 2017, began implementing pro-business policies that have started to yield results.

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On the 21st (local time), The Economist reported on this situation in an article titled "Why Are German Businesspeople Showering Unexpected Praise on France?" A decade ago, Germany, a manufacturing-based export powerhouse, was envied by France for its abundant labor force, low unemployment rate, and high productivity, but recently, the mood has completely shifted.

In fact, last September, Germany's leading current affairs weekly Der Spiegel published a column titled "France ? the Better Germany (Frankreich ? das bessere Deutschland)." The columnist evaluated that although President Macron lacks popular support, he has achieved economic success, and his reforms have secured the economic growth that France had long sought.

Klaus Schweinsberg, a German professor at ESCP Business School in Paris, one of Europe's leading business schools, was quoted by The Economist as saying that "the roles between France and Germany have reversed."

The Economist attributed the contrasting fortunes of the two countries to political reasons. While the French government has been pouring out pro-business policies for over five years, Germany has seen politicians with little understanding of business and industry take the lead, resulting in policy differences.

In particular, the Macron administration placed many officials with extensive corporate and industrial experience in key positions, such as Roland Lescure, Minister of Industry and a former investor. In contrast, apart from Joerg Kukies, Deputy Chief of Staff for Economic Affairs in the German Chancellor's Office and a former Goldman Sachs executive, there are reportedly very few members of parliament or government officials with corporate experience in Germany.

The Economist noted that although the French government proactively introduces pro-business policies, it builds an environment that helps private sectors such as companies and investors take the lead rather than running businesses in a state-driven manner.

As a result, according to a survey by consulting firm EY, France attracted the highest number of foreign direct investment projects among European Union (EU) member states for four consecutive years until last year. Analysts attribute this to President Macron's active pursuit of measures necessary for businesses, including government subsidies for foreign manufacturers.

For example, in May, German vacuum pump manufacturer Pfeiffer Vacuum announced it would invest 75 million euros (approximately 106 billion KRW) in its factory in Annecy, southeastern France. The Macron government provided a subsidy of 20 million euros and ensured that administrative procedures were expedited.

Additionally, in May, President Macron invited Britta Giesen, CEO of Pfeiffer Vacuum, to a party held at the Palace of Versailles for politicians and foreign investors. He arranged seating to facilitate conversations between global entrepreneurs such as Elon Musk, CEO of Tesla, and Lakshmi Mittal, CEO of the global steel company ArcelorMittal.

This event, initiated by President Macron in 2018, reportedly attracted a cumulative total of around 1,600 investments and 45,000 jobs by last year. This year's event was attended by approximately 270 global corporate leaders from 40 countries, including U.S. pharmaceutical company Pfizer, Walt Disney, and Coca-Cola.

German venture capitalist Sven Jansen praised Macron, saying, "He understands how to promote innovation and startups," and evaluated that France's use of national policy to support the market economy is better than Germany's approach.

However, Macron's pro-business policies have also faced criticism within France. He pushed through pension reforms centered on extending the retirement age but encountered strong public opposition, losing momentum in governance early in his second term. According to Politico, Macron's approval rating was 42% in April last year but dropped to 26% in May due to the pension reform issue and has since hovered in the low to mid-30% range until last month.

This content was produced with the assistance of AI translation services.