Top 10 most attractive European countries to investors

United Kingdom

United Kingdom remains the most attractive destination for investors in terms of FDI for the eight year in a row, according to Ernst&Young’s European Attractiveness Survey.

The number of FDI projects in the country fell by merely 1% to 678, and attracted 16% of the jobs created by FDI across Europe (20,017).

France

France keeps its second position, after attracting 529 FDI projects last year, 1% more than a year earlier.

The survey found a contrasted framework on the origin of FDI projects. United States, that still brings a third of total FDI projects in Europe, recorded a decline both in absolute value and as percentage, same as in Germany, UK, France and Japan that account collectively around 25% of number of FDI.

Germany

With 418 FDI projects and 7% year-on-year growth, Germany strengthens its third spot.

FDIs in Germany created approximately 4,928 jobs last year.

Spain

Spain finished on fourth with 173 FDI projects, 18% more than a year earlier. FDI projects have created 5,212 new jobs in 2008.

Ireland and Spain that so far have been on investors’ hot spot list, have suffered a deep recession in 2009 and FDI projects decline in these countries was no surprise.

Russia

With 170 FDI projects or 19% growth from a year earlier, Russia takes fourth in Ernst & Young’s European Attractiveness Survey.

On a long term, investors see Central and Eastern Europe as a priority. The region is seen by investors (59% of the respondents) as the third most attractive country to do business in the next three years, outranked only by China (66%) and India (61%).

Belgium

Belgium recorded a 3% increase in FDI projects last year to 146 that created 3,357 jobs.

Large European economies have coped pretty well in terms of their capacity to attract foreign investments in 2009, according to Ernst & Young survey.

The Netherlands

With 108 foreign direct investment projects in the Netherlands, 7% down from a year earlier, the country takes the seventh place in the list.

Poland

Poland came in at no 8, with 102 FDI projects, but the decline it recorded last year is dramatic: 42% from 2008.

Poland, Hungary, Germany and Czech Republic have been the hardest hit countries by recession, where the aggregate FDI slumped 40% , as investors preferred the stability in Western countries.

Italy

Italy was ranked ninth in the list, with 100 FDI projects, up 4% from 2008. FDI projects created only 1,955 jobs last year.

Apart from the analysis on foreign-direct investment projects for last year, the European Attractiveness Survey also looks at the potential performance of FDI inflows, based on the survey of 800 managers.

Even though half of the investors surveyed say they have no plans to invest in Europe, Marc Lhermitte shows in the report that the investment environment has been showing signs of recovery for 12 months.

Ireland

Ireland stands to ninth spot, with 84 foreign direct investment projects, down 2% from last year.

Romania

In 2009, Romania only attracted 75 FDI projects (-48%) that created 44% fewer jobs than a year earlier.

Romania only attracted 75 FDI projects in 2009, 2% of the total in Europe, but reaped 6,384 jobs, 5% of the European total. Despite both the number of projects and job creation falling by more than 40%, Romania remained highly attractive for industrial services, stable at around 7% of the European total.

By the number of FDI projects, Romania outranked Switzerland, Hungary, Sweden and Austria.