A survey conducted by EY across 44 nations in Europe highlights that foreign investment across the continent recovered in 2021 following a COVID-ravaged year which saw investment levels drop by 13 percent.

The survey highlights that businesses remain optimistic that Europe will retain its status as a highly attractive long term destination for foreign investment.

France for instance, saw a 24 percent increase in foreign projects announced in 2021.

In an interview to CNBC-TV18, Emmanuel Lenain, French Ambassador to India said, strong reforms in labour laws, reduction in corporate taxes has helped France to be the number one destination for foreign investment in Europe.

“For third year in a row France is number one destination for foreign investment in Europe. That is a clear recognition of the reforms that have been carried out in the country over the last five years. There has been strong reform of the labour laws, we have lowered corporate taxes, there is now a flat tax on capital gains and the results are in front of us.”

He said nuclear can be a great area of cooperation between India and France.

“France has been investing in nuclear energy for decades and right now 80-85 percent of our electricity is provided through nuclear. As a result France has the lowest cost of electricity in Europe. So nuclear would be a great area of cooperation between India and France.”

Meanwhile, Ugo Astuto, the EU Ambassador to India believes that the European Union will still remain an attractive investment destination despite the Russia-Ukraine war.

“EU is the world largest economic space. It is an advanced economy fully integrated into world trade. It is the first and preferred destination for foreign direct investment. Russia’s aggression against Ukraine is having global negative effect and together with our friends and partners we shall try to address it, but the parameters for the EU being the first and most attractive destination for foreign investment certainly do not change.”

Astuto said that the EU wants to reduce its dependency on Russian oil and gas and move towards cleaner sources of energy.

“We want to have an impact on the capacity of the Russian government to continue its unjustified aggression on Ukraine. In order to do so we have put in place several packages of sanctions. Now the Russian oil sector is also directly targeted. This will have a cost and it is a cost we are ready to bear. We also want to wean ourselves of our dependency on Russian fossil fuel sector be it oil or gas. When it comes to gas we are looking at ways and means to find different suppliers. We also want to accelerate our drive towards renewables and green energy.”

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