Macron believes France can entice foreign investors for heavy industry

On May 12, Friday, French President Emmanuel Macron travelled to an aluminium factory in Dunkirk to showcase the region's industrial recovery and highlight France's growing economic relevance for foreign investments.

This visit follows the announcement by Taiwanese industrial group Prologium that it has chosen Dunkirk as the location for a hi-tech factory to manufacture batteries for electric cars from 2026.

Macron is expected to tour the Aluminium Dunkerque plant, the largest producer of primary aluminium in Europe, and emphasise his government's commitment to accelerate the re-industrialisation of France.

The strategy was reiterated in an interview with the weekly magazine Challenges. "Re-industrialisation means creating purchasing power and financing our social model," exclaimed Macron.

"It also means reducing the foreign trade deficit. If we don't win the battle of industrialisation, we won't be able to win the battle of full employment," he emphasised.

"We won't be able to give back perspectives and projects to the territories and thus cement our national unity again," he added.

During a recent interview, Macron promised to reduce the red tape hindering entrepreneurs from establishing industrial operations in France. The country's efforts have resulted in it topping the list of European countries with the most foreign investment decisions, attracting 1,259 projects in 2022, including 547 foreign industrial projects.

According to the accountancy firm EY's doctrine: "Industry remains a driving force of France's attractiveness: 4 out of 10 projects will involve setting up or extending a factory and the availability of low-carbon energy remains, despite the current energy crisis, France's main asset for industrial leaders."

In a meeting with business leaders, Macron urged them to prioritise carbon-friendly, biodiversity-respecting, and digitalised industrial plants. "We will support batteries and vehicles that are produced in Europe because their carbon footprint is good," he made it clear.

"This does not mean that we are engaging in protectionism. But we do not want to use French taxpayers' money to accelerate non-European industrialisation," Macron asserted.

He also announced a 700 million euro training program for future professions and a green industry tax credit for technologies such as electric batteries, heat pumps, wind turbines, and solar panels, which could trigger 20 billion euros of investment in France by 2030. Additionally, he called on the EU to pause the imposition of environmental regulations, citing Europe's already significant efforts compared to other industrial powers.