US investors' confidence in France plummets under Macron

Investing.com -- US investors' confidence in France has dropped significantly as President Emmanuel Macron's decade in power nears its end, according to a new survey by the American Chamber of Commerce and Bain & Company.

Only 17% of surveyed investors expect conditions in France, the euro area's second-largest economy, to improve within the next two to three years. Meanwhile, 55% believe the situation has worsened over the past year.

This represents a dramatic shift from 2018, when 72% of respondents anticipated a better outlook following Macron's initial election on a pro-business platform that promised lower taxes and reforms to attract investors. That optimism peaked at 74% just before his reelection in 2022.

Macron has approximately one year remaining in office before elections in which he cannot participate due to France's constitutional two-term limit. Current polls indicate Marine Le Pen or her ally Jordan Bardella are leading contenders to succeed him.

Economic policy uncertainty has increased following Macron's decision to call snap legislative elections in 2024, resulting in a hung parliament that has struggled with fiscal policy decisions and triggered multiple government collapses.

The survey reveals that 28% of American investors expect to reduce their workforce in France in 2026, while only 18% plan to create new jobs. Additionally, 77% of respondents expressed a lack of confidence in the government's ability to implement necessary economic reforms before the 2027 elections.

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