Part of France’s response to the public health crisis was a new economic stimulus plan, France relance. Through France relance, emergency economic measures and sector support plans would be implemented. The French President Macron explained that he wanted to “turn the crisis into an opportunity, chiefly by investing in the most promising sectors, those on which tomorrow’s economy and jobs will be built.” France is already the number one country for the industry sector and has the most international investors in Europe. This is because France offers a business friendly environment such as the best tax treatment for research and development projects, leadership in innovation and has world-class infrastructure.
The new France relance plan has 3 main objectives it will aim for in order to transform the economy. The first is supporting the ecological transition, the second is creating favourable conditions for companies to grow their business and protect jobs, and the third is guaranteeing solidarity between all French citizens, regions and generations. To improve the economy, France has organised 127 ready to use industrial sites for companies who want to invest in France.
But what is a ready to use industrial site?
Ready to use industrial sites are areas that provide ecosystems particularly suited for welcoming an industrial company in a shorter, more controllable timeframe. This is thanks to the administrative procedures, such as urban planning and preventative archaeology, already being pre-planned and therefore the early delays when setting up a new site are avoided.
Steps to improve the economy
The drivers of the transformation of the French economy are the digital economy and the environment. The France relance plan specifies many initiatives related to these points that it will focus on in order to transform the economy.
- The government will launch the 4th National Investment Program which will fund innovative products and services from testing stages all the way through to the market launch.
- An increase of government support of the digitalisation of the production ecosystem. For example, financial support in the form of a subsidiary or auditing to allow smaller companies to modernize production facilities.
- Speed up the digital transformation of the government and the country’s regions- with a budget of €1.5 billion.
- Support start-ups that develop technologies such as artificial intelligence, cloud and quantum computing etc. through contributing to investment funds.
- Support the decarbonisation of industry through financial support to boost energy efficiency.
- Support the growth of highly strategic green hydrogen sector. For example, support water electrolysis hydrogen production.
- Promote the circular economy and short supply chains through re-use and recycling through supporting activities that help reduce the use of plastics and support the modernization of waste sorting centres.
- Develop clean daily mobility by improving public transport and promoting the purchase of clean vehicles.
- Introduce an ambitious energy renovation program for public and private buildings.
As well as explaining the government’s initiatives, the France relance plan also identifies financial incentives for investing in the industrial sector in France.
- Cuts to production taxes. There will be a 50% reduction in corporate value added tax and property taxes on industrial sites that will automatically apply to all businesses that are liable for those taxes.
- Support for international investment in strategic sectors such as healthcare, electronics, agri-food, telecommunications, aerospace, automotive etc. Any industrial firm involved in the strategic sectors can apply and subsidies will be granted to all successful applicants.
- Financial aids given to stimulate youth employment in the form of recruitment bonuses. There are 2 types of aid, that for recruitment of under 26s on a fixed or permanent contract and that for recruitment of an apprentice/student on a work-study program.
We hope this presentation of ready to use industrial sites has been useful. If you have any questions, feel free to contact us.