France is a great place for foreign investors despite inflexible labour market rules, high social charges, concerns about economic patriotism and recent protests over a job contract, government officials said on Tuesday.
An annual study by the finance ministry and the French investment agency Invest in France compared the country's attractiveness as a destination for foreign investment with Poland, Japan, Belgium, the Netherlands, Spain, Germany, the United States, Britain and Italy.
Officials brushed aside complaints by business leaders and the World Bank as they presented the report which showed foreign direct investment averaged 32.4 billion euros between 2003 and 2005, putting it third after the United States and Britain.
"The report shows France's very strong position compared to the other countries," Trade Minister Christine Lagarde said at a press breakfast.
The upbeat comments from government officials contrasted with pessimism from business group MEDEF which said that France had lost its competitive edge.
In terms of infrastructure France was the most attractive country for foreign investors because of its high-speed train network, the report said. But it came ninth in terms of the high costs of social charges for each employee and for labour market flexibility.
The World Bank ranked France 44th out of 155 countries in its 2006 Doing Business report for ease of doing business and 142nd in terms of hiring and firing.