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France Bets on Long-Term Investment Amidst Global Slowdown
14 Apr
Summary
- France seeks long-term investment, including from US firms, for data centers.
- The French economy remains resilient despite a short-term slowdown.
- Ample, cheap, and carbon-free electricity is key to attracting investment.
France is strategically emphasizing long-term investment to counteract a current economic slowdown influenced by geopolitical events. Finance Minister Roland Lescure highlighted that the nation's substantial capacity for carbon-free, affordable electricity positions it as a prime location for data center development, attracting interest from US firms.
Lescure indicated that the economic impact from recent Middle East conflicts has been moderate, aligning with the government's 1% growth forecast for 2026. A recent Bank of France survey also suggested economic resilience in March, with potential growth of up to 0.3% in the first quarter of 2026.
Despite this short-term strength, a slight deterioration in economic outlook is evident, with declining confidence and rising inflation expectations among households and businesses. Minister Lescure stressed that continued investment is crucial for long-term prosperity and overcoming these challenges, viewing growth as the essential way forward.
