FRANCE LOOKS FOR NEW FOREIGN INVASION

Global Finance, Dec 2004 by Green, Paula L

FRANCE

When one is considering what is quintessentially French, many things come to mind. One characteristic that is not among them is a dedicated work ethic. For The Invest in France Agency, whose role is to bring foreign investment into France, that is a problem. Instead of simply shrugging and saying, "C'est la vie," however, the agency is splashing out $25 million on a campaign aimed at showing investors and businesses that France is a great place to get some work done.

Clara Gaymard, the president of the Paris-based agency, is intent on dispelling the myths that surround the French economy and its business climate. "The number-one myth is that there is no flexibility in the work environment...that it is impossible to fire anyone," says Gaymard, who launched the agency's global marketing campaign at a luncheon at the French Consulate in New York City last month. In case anyone was still in doubt, she added: "It's not true. It's a myth."

The campaign also aims to lay to rest two other stereotypical images of French workers: that they are always on strike and are unproductive. In this case, the evidence stacks up in France's favor: France loses fewer days to strikes than the United Kingdom or the US, and it has the second-highest hourly productivity rate in the world, ahead of the United States.

As the economic development arm of the French government, The Invest In France Agency has helped lure $50 billion worth of foreign brick-and-mortar investment across French borders over the years, so why did it choose now for such a lavish campaign? The answer lies to the east: After the recent expansion of the European Union, the French government is eager to keep abreast of the fierce competition among nations for foreign investment.

France is also keen to mend some broken fences with the US. "In the past two years there have been some 'difficult moments'," says Jean-David Levitte, the French ambassador to the United States, adding that his classification of recent US-French relations is "a diplomatic understatement." "There was 9/11, and the issue of Iraq was too prominent, and then there was the US election. The ambience was not good," he says. Whether a $25 million campaign can change all that remains to be seen. But, at the very least, the nation known for wine, cheese, haute couture and haute cuisine will also be known as an appealing place to do global business. -Paula L. Green