Economic relations between Spain and France, traditionally strong, are currently experiencing a particularly dynamic period: Spain is France's second-largest trading partner and third-largest supplier, while France is Spain's largest trading partner and largest trading partner worldwide. Furthermore, Spain is one of the few European countries that, despite the widespread economic crisis of the last two years, has maintained a satisfactory level of growth.
But the apparent good health of the Spanish economy, as well as the close collaboration at all levels between the two countries, contrasts with a certain sluggishness in Spanish entrepreneurial activity in the international market, and particularly in the French market. There are already 1.200 French companies operating in Spain; however, Spanish production facilities in France barely exceed two hundred plants. This figure is surprising, even paradoxical, because France is probably Spain's most natural market, and yet, until now, Spanish companies have preferred to establish themselves in Latin America. Lately, emerging economies in Eastern Europe and Asia seem to be attracting Iberian companies.
But make no mistake: few countries can offer Spanish companies such a developed, and above all, secure economic, industrial, and logistical environment as France. The primary reason for this is, ultimately, the great similarity between the two countries and the strong understanding between our two Latin cultures, which makes it possible to do business in France without feeling lost in a foreign land. This is, of course, not the only reason. Establishing a presence in our neighboring country also means, and above all, access to the 450 million European consumers who constitute the world's largest market. It is no coincidence that France shares borders with seven countries, which undoubtedly offers unparalleled logistical advantages, as does its extensive network of land, sea, and air transport infrastructure. The TGV (high-speed) lines are particularly noteworthy, allowing travel across the country in just a few hours. The quality of its workforce is another advantage: France boasts some of the highest productivity rates among major industrialized nations, and its workforce is among the most skilled in Europe, at a cost below the European average. Add to this factors the high level of education among its population, the low cost of electricity and telecommunications, and the importance of R&D, and we can understand why France is the world's second-largest recipient of foreign direct investment.
Of course, much more can still be done to strengthen the attractiveness of French territory, and the current Government has taken this into account, adopting some 50 measures at the end of 2003 aimed at encouraging the establishment of companies.
Promoting foreign investment, which generates wealth and employment, has become a true national priority, as demonstrated by the recent creation of the French Agency for International Investments (AFII). AFII, a service of the French Embassy in Spain, aims to provide Spanish businesses with all the necessary information and support when considering a project to establish operations in France, completely free of charge. After reviewing the project requirements with the company, the agency provides specific proposals for locations within two to three weeks, outlining the different possible areas, their advantages, costs, local taxes, and available support (subsidies, tax exemptions, etc.). A website with comprehensive information on the business environment in France is available at www.afii.fr.
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