Earlier this month, Stephen Dainton, President of Barclays Bank PLC and Head of Investment Bank Management, attended Choose France, the French Government’s annual flagship business summit held at Versailles, to promote inward investment.
Barclays has operated in Europe for over 100 years, bringing access to our global franchise to European clients. In recent years we have observed France become the leading destination in Europe for foreign investors. In the UK, our home market, the Government has clear ambition for the UK to represent a strong investment proposition as part of its growth agenda. With that goal in mind, here are five lessons from Choose France.
Five lessons from Choose France...
1. Establish a clear narrative on investment priorities
France has a systematic, coordinated and long-term industrial strategy designed to spearhead business growth and clarify the State’s support for strategic areas of the economy. The UK Government’s Modern Industrial Strategy, due to be published imminently, is an opportunity to establish a clear narrative on investment priorities.
2. Identify areas of competitive advantage
The French Government is methodical in identifying areas of competitive advantage and putting its weight behind them. Barclays has an extensive portfolio of clients spanning all sectors of the UK economy, so we can see the UK’s strength in R&D and manufacturing - including in defence, in financial and professional services, alongside a burgeoning technology and renewables sector. These sectors should sit at the heart of a plan to define the future prosperity of the UK economy.
3. Facilitate private-public collaboration
The sense of genuine collaboration at Versailles, between corporates, entrepreneurs and policy makers, was palpable. Business and policymakers in the UK need to work together to develop favourable conditions to attract and reward private capital. Short of a UK Development Agency akin to Business France, the UK’s Global Investment Summit is a good attempt to begin the conversation. Plans underway to revamp the Office for investment should also be accelerated.
4. Nurture strong capital markets
As a global corporate Investment Bank, we recognise the importance of having an active and vibrant market for connecting companies with investor capital. The UK Government should retain a focus on measures that can improve liquidity in markets, including encouraging retail investment and ongoing pension reforms to incentivise increased home bias in their asset allocations. The French don’t shy away from promoting the benefits of investing specifically in European assets, the UK shouldn’t either.
5. Continue to pursue diversified economic relationships
While 40 per cent of attendees at Choose France are European, Americans remain the most represented nationality, with 19 per cent of the attendees. The pursuit of diversified economic relationships, against a changeable geopolitical backdrop, continues to be important in an investment context.
The Formal Gardens at the Palace of Versailles during the Choose France summit.
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