The coastline is narrow: to attract capital from other countries without sacrificing French strategic interests. The government of Sébastien Lecornu is studying the possibility of new rules for foreign investments. The Prime Minister has entrusted deputies Christophe Plassard (Horizons et independents), Charles Rodwell (Ensemble pour la République), and Jean-Louis Thiériot (Droite républicaine) with a temporary mission “on the security and economic policies implemented by our main European partners and the lessons to be learned,” through three decrees of March 11.
For Sébastien Lecornu, “the current economic and geopolitical context strengthens the need to protect the strategic assets of the French economy” and “to reduce our strategic dependencies, industrial, technological, financial, or digital,” as stated in the mission letter dated the same day and obtained by Challenges.
According to the letter, the three parliamentarians are to examine “how our partners conceive and implement their economic security policies.” This should allow “comparing the effectiveness and scope of our own policy and drawing inspiration from the best European practices,” while adapting the “approach to economic security vis-à-vis European investors.”
Among the states of particular interest to Sébastien Lecornu mentioned in the letter are “Germany,” “Italy,” “Spain,” the “Netherlands,” and “the Czech Republic.” Outside the EU, “the case of the United Kingdom and Canada seems to deserve attention.” Finally, the Prime Minister invites the three deputies to conduct “the analysis of security and economic strategies implemented by the United States and China.”
Despite political instability, France remains the champion of foreign investments in Europe. The three elected officials will examine publicly available reports on the subject and consult their own networks, explains Christophe Plassard. The deputy, special rapporteur of the defense budget, wants to exchange with his “usual contacts”. To conduct their survey of “strategies and legal tools” used in other countries, the three parliamentarians will request information from “the embassies of France,” and also “the embassies of countries in Paris,” says Christophe Plassard.
According to him, the implementation of the proposals could involve legislation or regulation. The mission letter recalls that a decree of March 20, 2019 defines “French economic security policy”. The deputy does not consider a reform of this text certain. “We must not anticipate anything, we will see,” assures the elected official.
Bercy does not rule out new measures to protect French interests regarding foreign investments, notably defined by a decree of May 14, 2014, known as the Montebourg decree, named after the former Minister of Industrial Renewal. “We have a rather exemplary system in Europe, but we must regularly reassess it and, why not, deepen it,” said the Minister of Economy, Finance, and Sovereignty, Roland Lescure, during the government question session on February 24 at the National Assembly, announcing the creation of the mission.
In addition to recommendations for reforms, Christophe Plassard envisions recommendations for “best practices”. He cites the example: “Foreign investors in France are often funds, which usually enter a company for five to seven years. But if we know how to analyze the entry into capital, we know less how to anticipate exits.” The deputy suggests developing “proactive markets”, such as “setting up a pool or seeking investors”, to support the replacement of funds. The three elected officials must submit their report to Sébastien Lecornu in June.
In the meantime, at the Brussels commission, the Executive Vice President for Prosperity and Industrial Strategy, Frenchman Stéphane Séjourné, advocates for the establishment of “European preference” in the allocation of public contracts and aid to companies. The principle is included in the proposed regulation for industrial acceleration, presented on March 4 by the institution and still to be negotiated by the European Parliament and the Council of the EU. The objectives of this text are to preserve the industry and strategic interests of a continent threatened with marginalization.
