Foreign Investment

Investors Choose Germany First in Europe

industrie Park Frankfurt Hoechst
French investment is behind the Frankfurt-Höchst industrial park.
  • Why it matters

    Why it matters

    Germany’s popularity for investors could be affected if it doesn’t look at reducing its bureaucratic barriers and focusing on supporting innovation within its borders.

  • Facts


    • Germany’s secure location, highly-trained workforce and high profits make it an attractive investment option.
    • Last year, 40 percent of all Chinese investments in Europe went to Germany.
    • The number of German jobs created by foreign investments rose by 9 percent to 11,300 last year.
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French pharmaceutical giant Sanofi-Aventis hired 500 employees in its expanded industrial park in Frankfurt-Höchst. In the town of Eisleben, Germany, Swiss bakery goods producer Aryzta built a large bakery that employs 295 people. And Britain’s largest online dealer for household equipment, AO World, is transferring its European headquarters to Bergheim, a city near Cologne.

These are three of 763 projects in Germany funded by foreign investors. For them, the continent’s largest economy has become one of the three most attractive business locations in the world — and by far the top in Europe. After two years of decline, the number of jobs created in Germany by foreign investors rose in 2014 by 9 percent to 11,300.

That is according to international accounting company Ernst Young (EY), which used its company databank and a survey of executives at 808 international companies.

The findings, which have been obtained by Handelsblatt, show 21 percent of managers named Germany when asked about the most attractive locations for investments. Worldwide, only China (38 percent) and the United States (35 percent) did better.

The next most popular European country, Britain, was in eighth place (9 percent). In comparison to the previous year, Germany climbed one position.

“Foreign firms are not concerned with where they receive the highest subsidies and pay the lowest taxes,” said EY’s Peter Englisch, who oversaw the study. If that were the case, Germany would not be the top choice so often.

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