In recent years, Paris has experienced a remarkable revival, with global businessmen, financiers, and tech professionals mentioning that they are spending more time in the City of Lights. Wall Street banks have expanded their offices in Paris, and venture capitalists are showing more interest in investing in French startups. An annual investment summit held at the Palace of Versailles has become a significant event on chief executives’ calendars. During this year’s summit, company leaders pledged investment projects worth €15bn ($16bn) as they mingled with President Emmanuel Macron.
This resurgence is part of Mr. Macron’s efforts to make France a more innovative and business-friendly country. However, this project is now at risk. Following a defeat in the elections to the European Parliament, Mr. Macron has called for a snap national parliamentary election, with the first round scheduled for June 30th. Hard-right and hard-left parties are polling well ahead of Mr. Macron’s party, and their unsustainable spending plans are causing concern among investors and are not conducive to global business interests.
Just a few weeks ago, Paris was enjoying the spotlight, especially as the host city for the 2024 Summer Olympics in July. However, a cloud of uncertainty now looms over the city’s significant commercial revival due to the upcoming election and the potential shifts in policy directions that may follow.