France

Given its geographical proximity and the close trade links developed over time, France is, along with Germany, the Basque Country’s main trade partner; that is particularly the case of sectors such as the manufacturing and automotive industries, tourism and agrifood. Furthermore, the proximity facilitates the flow of goods and services, and access to European markets through its territory, along with the business and cultural exchange, multiplies trade development and cooperation opportunities.

The Basque Country, gateway to Europe

France has a strong global economic position and is one of Europe’s largest economies, second after Germany and seventh in the world in terms of Gross Domestic Product (GDP). The country has a diversified country, with key sectors such as manufacturing, energy (particularly nuclear), the aerospace industry, tourism and financial services. France is an important player in international trade, both as an exporter of goods with high added value (luxury items, technology and vehicles) and as an importer of raw materials and industrial components. Furthermore, its economic influence is reflected in its membership of the G7 and G20, where it plays a key role in international diplomacy and in global economic affairs.

France is noted for having a diversified economic system that address key sectors such as the manufacturing and car industries, energy and tourism. Furthermore, the services sector is dominant, particularly in finances, insurance and trade. France is also a leader in technological innovation and sustainable development.

The GDP is expected to grow by 1.2% in 2024, together with a gradual recovery of the economic momentum in 2025-26. France is facing certain economic challenges, including its high public debt and the need for structural reforms in the labour market and to the pension system. However, it continues to be an economic powerhouse with a strong position within the European Union and globally. The economic forecasts for the coming years point to moderate growth driven by domestic consumption, exports and investments in infrastructure and technology

France is a key global exporter in sectors including the automotive industry, aerospace, luxury items, and agribusiness. Furthermore, it is one of the main exports of high value manufactured goods, and it also stands out for its strong tourist sector, which brings in a large amount of foreign revenue.

However, its high dependency on hydrocarbon imports in particular mean that the country has had a current account deficit of 0.8% of the average GDP between 2009 and 2024. France’s trade relations are deeply intertwined with the European Union, with Germany as its main trade partner; the country also has strong trade ties with the United States and China.

The French market is one of Europe’s most important and diversified, and boasts an advanced economy; its domestic market is driven by key sectors such as the automotive industry, luxury items, food, energy, and technology. The services sector, which includes tourism and finances, also play a vital role in the country’s economy.

Household spending has been a fundamental component of the economic growth in recent years, shored up by social welfare policies, relatively high salaries and a robust social protection system that maintains consumer purchasing power. Domestic consumption in France has also been impacted by a growing interest in sustainable products and green technologies, in line with the country’s sustainable development goals

The stability of the French market is a lure for foreign investment, driven by policies that foster innovation and sustainable development.

France is an attractive market for investors, mainly due to the governmental policies such as the tax credit for green industry or the state investment in R&D. The country’s corporation tax is being reformed to bring it into line with EU directives and to be within the European average. There are several tariff and regulatory barriers to protect certain sectors from the influence of the international markets. These measures, together with the French legal system and its zero-corruption policy, create an attractive and safe landscape for investors.

The French tax system, shored up by the 2024 Finance Act, is a pull factor for investors thanks to measures such as the tax credit for green industry. Even though the current corporation tax is rather high, it is expected to be lowered significantly, as France is seeking to follow the European initiative to lower the tax rate. These reforms will create an interesting market for local and international companies alike, as they will find a mature market with an efficient banking sector and a dynamic stock exchange with great ability to attract financing.

As a member of the EU and of the Eurozone, France has witnessed its market being thrown wide open in the same way as the rest of its European partners. France offers opportunities for high value-added sectors such as aerospace, luxury items and pharmaceuticals. Certain sectors may be rather more difficult for foreign companies, as France has certain protectionist measures, such as strict antidumping legislation for textiles and machinery. Even though France is in the Eurozone, it is an openly sceptical country about trade agreements, meaning that companies have to navigate a market with opportunities and strict oversight.

France is a complicated country for those outside the EU, mainly due to its rigorous customs processes and slow transition to digital systems. These administrative barriers add a high cost in terms of time and money, and complicate access for companies outside the Eurozone. These problems have been aggravated with the TCA, the EU-UK Trade and Cooperation Agreement, which establishes strict rules of origin and double compliance requirements for products. France is a country that, even within its many international trade agreement, maintains multiple protectionist measures that limit access to the market.

France is a safe country for international and national companies, as it has a highly efficient bureaucratic, legal and regulatory system. The French government has efficient anti-monopoly policies, attractive incentives and policies that foster fair competition, which makes it a very attractive market. France is a county with efficient protection of intellectual property rights; it is therefore likewise a very attractive country for innovation and technology development companies.

Contact office

Beñat Lekuona

Business Manager

Sonia de la Fuente

Business Manager

BASQUE COUNTRY DELEGATION IN FRANCE

39, rue des Mathurins,
75008 Paris

+33 (0) 785 756 270

+33 (0) 607 021 043

b-lekuona@euskadi.eus

s-fuentegaragalza@euskadi.eus

* Office hours:

Monday to Thursday: 7.30 a.m. to 4.00 p.m.
Fridays: 8.00 a.m. to 1.00 p.m.

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