The UK Is the Top Foreign Direct Investment Job Creator in the EU
The UK created the most jobs through FDI in 2014
According to the 2015 Ernst and Young European Attractiveness Survey, the United Kingdom (EWU) created the most jobs through foreign direct investments (or FDI) in the European Union (FEZ) (VGK). 31,198 jobs were created in 2014, 12% more than in 2013.
The UK had the highest number of FDI projects among European nations in 2014. The percentage of total shares stands at 20% with 887 projects in 2014. The ability to convert FDI into jobs is illustrated by the fact that the highest number of corporate headquarters are located in the UK compared to other European nations. HSBC (HSBC), Royal Dutch Shell (RDS.B), and Unilever (UN) have headquarters in London.
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Ease of doing business
The UK is more convenient for doing business because it takes an average of 13 days to set up a company compared to an average of 32 days in other member countries of the EU. The UK is a strong defender of the rights of the companies registered under it, and it doesn’t distinguish between British firms and foreign companies established through the FDI route. Moreover, it doesn’t differentiate among companies based on national origin of the company or its owner. The tax regime is also lower than other European nations.
The looming decision
Whether the UK will stay or leave the European Union will depend on the outcome of the June 2016 referendum. Leaving the European Union would be a big move for the UK and could affect both the EU and the UK’s political and economic sentiments.
To learn more, read How the British Referendum Could Affect Investor Sentiments.