France announced that Morgan Stanley would establish a new European office in Paris, alongside two other companies unveiling a combined investment of 700 million euros ($753.8 million), ahead of the country’s pivotal annual foreign investment summit.
Finance Minister Bruno Le Maire revealed on Sunday that Morgan Stanley’s new ‘European campus’ in Paris would generate an additional 100 jobs.
Additionally, German aviation firm Lilium pledged a 400 million euro investment in a factory, while Swiss-based company KL1 committed 300 million euros to a nickel refining site. These investments are anticipated to create over 1,000 jobs collectively.
Le Maire’s announcement coincided with President Emmanuel Macron’s hosting of the annual ‘Choose France’ event on Monday, aimed at attracting major international businesses and investors.
The event unfolds amid concerns over France’s budget deficit and a modest 0.2 percent growth in the first quarter.
Addressing the ongoing competition from China and the United States, Le Maire emphasized the necessity for France and the European Union to intensify their efforts.
He pledged to advocate for a capital markets union at a European Union meeting in Brussels, underscoring its significance in facilitating investments in burgeoning sectors like renewable energy and artificial intelligence.
“Europe needs money. If not, it will continue to lose out in terms of productivity to the United States and China,” Le Maire emphasized.
Despite these ambitions, the Z/Yen survey of global financial centers ranked Paris 14th, trailing behind Frankfurt, while New York retained its position as the world’s top financial hub.
Moreover, French oil major TotalEnergies recently considered listing its primary stock market in New York, adding to the challenges of bolstering Paris’ financial stature.
As part of the ‘Choose France’ event, which attracted 13 billion euros in foreign investments last year, Le Maire will convene meetings with chief executives from JP Morgan, Goldman Sachs, Morgan Stanley, and Bank of America, among others.
These discussions aim to strengthen ties with major financial investors to further establish Paris as a hub for financing significant industrial and economic ventures.
