Girls benefit from the view of Sacre-Coeur Basilica of Montmartre and Eiffel Tower on the Parc de Saint-Cloud close to Paris, France, April 26, 2022. REUTERS/Gonzalo Fuentes/File Picture

LONDON, June 13 (Reuters) – France made up extra floor on Britain in attracting abroad direct funding into monetary companies final 12 months, in line with analysis by accountancy agency EY revealed on Monday.

Britain nonetheless retained prime spot within the European rankings – attracting 63 initiatives in 2021 – however the hole with second-placed France narrowed, with its neighbour recording 60, its highest quantity within the final decade.

Each nations enticed a better variety of initiatives in 2021 than within the earlier 12 months – up seven for Britain and 11 for France – bucking the development for a contraction in Europe general.

Overseas direct funding into monetary companies throughout Europe general fell 2.8% final 12 months, EY mentioned.

London stayed prime of the town desk, with 39 initiatives in 2021, however this was lower than half the 86 initiatives it chalked up in 2018. Paris recorded 38, only one undertaking behind London.

Britain’s prime spot confirmed it retained its enchantment for worldwide traders after Brexit, EY’s researchers mentioned, however they mentioned France was catching up.

“France specifically is rising rapidly, closing the hole with the UK, and even overtaking it in attracting the best variety of funding initiatives from the U.S. for the primary time,” mentioned Omar Ali, a monetary companies managing accomplice at EY.

Spain, Germany and Eire rounded out the highest 5 nations in EY’s rankings, whereas Madrid, Dublin and Berlin accomplished the highest 5 cities.

Britain continued to draw proportionally extra new initiatives than France – which are inclined to generate extra jobs – somewhat than expansions to current initiatives, EY mentioned.

Britain was additionally seen as essentially the most engaging European nation for future monetary companies funding, forward of Germany in second and France in third, an EY survey of world traders discovered.

Reporting by Iain Withers; Enhancing by Edmund Blair

Our Requirements: The Thomson Reuters Belief Ideas.