Foreign investment is widely seen as the main driver of economic growth, innovation and job creation. When companies open new fields, build factories or establish research centers, they not only bring capital to the country, but also create jobs and strengthen local supply chains.
As a result, competition to attract international investors intensified. Governments use investment incentives, tax cuts and international investment forums to persuade companies to choose their own markets.
France has also made attracting foreign investment an important priority in recent years. The government has been promoting the country through the ’ initiative since 2018“FranceSelect ’.
At this year's summit, President Emmanuel Macron said foreign companies had pledged investments worth €93 billion, which ’ described as a record figure.
How successful are European countries in attracting international investors? Which countries attract the most investment projects?
France EuropeContinues to be ’'s largest investment destination
The EY European Attractiveness Survey provides a useful benchmark for international investors to measure competition. Unlike traditional foreign direct investment (FDI) statistics, which can deteriorate due to large transactions or in-house financial flows, the survey tracks the number of individual investment projects.
These include new projects announced or registered by foreign companies in a given year, such as the opening of new facilities, the construction of production facilities or the expansion of existing operations.
According to the last number of the survey, 5,026 new investment projects were announced across Europe in 2025. EY defined the European ’ as a geographical region rather than the European Union. This figure is according to 2024’ %It declined by seven to its lowest level in 11 years.
Despite a sharp decline, France has maintained its position as Europe’'s leading destination in terms of foreign investment. Number of projects 2025’te declined to 852’ye; This represents the largest drop among Europe’'s major investment destinations.
United Kingdom, compared to the previous year %It ranked second with 730 projects, down 14.
Germany remained ’'s third largest foreign investment destination with 548 projects. However, the total %It fell 10 times to its lowest level since 2009 ’.
The long-term trend is even more striking. Compared to 2019, GermanyNumber of investment projects in ’ is down; this, France’ya (%-28) or United Kingdom ’a (%-34) is a much steeper drop compared to.
2025Spain and Turkey were among ’'s strongest performers. Number of investment projects in Spain %He placed fourth, increasing by 20 to 383’e. Turkey is %It ranked fifth with 376 projects, up 7 percent.
Poland, compared to the previous year %With an increase of 10, 2025’te continued its upward trend, registering 285 investment projects. This made it the sixth largest destination for foreign investment in Europe’. The Netherlands also %It was among the few countries that recorded growth with the number of projects increased by 8 to 159’.
Italy, Belgium and Portugal also saw a decline in investment activity in ’. Number of projects Italy’da %8 down to 206’ya, Belgium’da declined to 187’ compared to the previous year in Portugal’ 6 projects were registered with 5 decreases.
Who invests in Europe’?
In 2025, the United States continued to be ’'s largest source of foreign investment projects. American companies have announced 943 projects across the continent, maintaining the position of Europe’'s leading foreign investor.
German firms took second place despite the sharp decline in investment activities abroad. Compared to the previous year in other European countries in 2025 %They announced 484 investment projects, down 24. In recent years, the decline has been unusually high, as the number of projects has generally exceeded 600’.
Despite the decline, Germany remained ’'s largest intra-European investor. France has once again become the leading destination for German investments, attracting 101 projects. For the first time, Turkey ranked second after England ’.
Europe is losing ground globally.
To put ’'s performance in a global perspective, it would be useful to look at foreign direct investment (FDI) flows. UNCTAD’'s 2025 World Investment ReportAccording to ’, global foreign direct investment 2024’te compared to the previous year %It dropped by 11 to about $1.49 trillion.
Europe has been hit particularly hard. According to UNCTAD’, the region attracted nearly $182 billion in foreign direct investment in 2024. That's up from $439 billion last year. %It went down 58.
North America, annually %It ranked second with a foreign direct investment inflow of $343 billion with an increase of 23. and asian, spite a modest decline of 3’, it has attracted $605 billion, continuing to be the world's largest destination for international capital.
However, these figures also bring with them an important methodological warning. UNCTAD excludes so-called “channel economies, such as Luxembourg, the Netherlands and Ireland, from ” to avoid distortions caused by holding company structures and in-group financial transactions.
Why are investors being more cautious?
According to EY’, weak economic growth in much of Europe’ was the main factor behind the decline in investment activities. High energy prices, geopolitical uncertainty and a more cautious corporate investment environment have also put pressure on business decisions.
Concerns over trade tensions and potential new tariffs are increasing pressure on investment plans.
Many investors are increasingly concerned about the combination of Europe’'s relatively high costs and weak growth prospects. EY also points out that frustration stemming from regulatory complexity has increased across the continent.
