Overseas capital inflows are broadly viewed as vital engines for expansion, creativity and employment generation. When firms launch fresh locations, erect plants or set up research hubs, they inject funds into a nation while frequently generating positions and reinforcing regional supplier networks.

Consequently, the contest to secure global backers has grown fiercer. Authorities deploy support packages, fiscal relief and worldwide forums to sway firms toward their economies.

France has likewise elevated the pursuit of overseas capital as a central goal lately. From 2018 onward, officials have showcased the nation via the Choose France program.

During this year's gathering, President Emmanuel Macron noted that overseas firms had committed €93 billion in funding, which the Élysée Palace called an all-time high.

Still, how well are European nations faring at drawing global backers? Which countries secure the greatest share of projects?

France Holds Lead as Europe's Prime Investment Hub

The EY Europe Attractiveness Survey provides a solid gauge for tracking rivalry among global backers. In contrast to standard foreign direct investment metrics, which may be skewed by major deals or internal corporate transfers, this review counts distinct projects.

These cover fresh initiatives declared or logged by overseas firms in a calendar year, such as launching facilities, building manufacturing sites or enlarging current setups.

Per the newest survey edition, 5,026 fresh projects were declared across Europe in 2025, with EY treating Europe as a broad geographic zone rather than solely the European Union. The count slipped 7% from 2024 and hit the lowest mark in 11 years.

Even after a steep fall, France kept its spot as Europe's foremost draw for overseas capital. Project numbers dropped 17% to 852 in 2025, the biggest slide among leading European sites.

The United Kingdom placed second with 730 projects, down 14% from the prior year.

Germany stayed third with 548 projects. Yet the total eased 10%, reaching its weakest point since 2009.

The longer view reveals even sharper shifts. Versus 2019, Germany's project count has plunged 44%, a far steeper fall than France's 28% or the United Kingdom's 34%.

Standout results in 2025 came from Spain and Turkey. Spain lifted its projects 20% to 383, claiming fourth place. Turkey came next with 376 projects, up 7%, in fifth.

Poland sustained its rise, logging 285 projects in 2025, a 10% gain from the year before. This secured sixth place overall. The Netherlands also grew, adding 8% to reach 159 projects.

Italy, Belgium and Portugal recorded drops. Projects eased 8% to 206 in Italy, 11% to 187 in Belgium, and 5% to 186 in Portugal.

Which Sources Fund Projects in Europe?

The United States stayed the top origin of projects in Europe during 2025. American firms declared 943 projects across the region, keeping their lead as the continent's chief external backer.

German companies ranked second even after a steep drop in their overseas activity. They declared 484 projects in other European nations in 2025, down 24% from the prior year. The fall was notable, since counts had often topped 600 recently.

Despite the dip, Germany remained Europe's top intra-European investor. France again led as the main target for German funds, drawing 101 projects. Turkey took second for the first time, ahead of the United Kingdom.

Europe Slips Further on the World Stage

For broader context, consider overall foreign direct investment flows. UNCTAD's World Investment Report 2025 shows global FDI eased to roughly $1.49 trillion in 2024, down 11% from the year before.

Europe suffered most. UNCTAD data indicate the region drew about $182 billion in 2024, versus $439 billion the prior year, a 58% decline.

North America came second with $343 billion, up 23% from the year before. Asia held the top global spot, attracting $605 billion despite a 3% dip.

These numbers carry a key note on method. UNCTAD leaves out conduit economies such as Luxembourg, the Netherlands and Ireland to sidestep distortions from holding structures and internal transfers.

Why Backers Grow More Hesitant

EY cites weak growth across much of Europe as a main driver behind lower activity. Elevated energy costs, geopolitical risks and a more guarded corporate mood have also tempered choices.

Trade frictions and worries over possible fresh tariffs add extra strain to plans.

Many backers now flag Europe's mix of elevated costs and modest growth outlooks. EY further notes rising irritation with regulatory burdens across the region.