Foreign investment Europe breaks

  Germany saw the largest rise in projects funded by foreign investments of foreign investment in Europe has increased significantly in 2010 to levels not seen since the beginning of the global financial crisisa study suggests.

This resulted in a record number of funded projects, while the number of jobs these has helped create have increased by 10% to 137 000, says Ernst & Young.

A 24% increase in projects funded by American investors was behind the rise.

The report also suggests that Western Europe would soon compete with China to attract foreign capital.

He said an increase in investment in Europe led to a 14% increase in the number of funded projects to 3,757, a record level.

"After a significant decline in investment during the worst of the global economic crisis, investors are now back in force in Europe, led by the United States," said Mark Otty at Ernst & Young.

"More attractive".

Measured by numbers project, Germany saw the highest increase in foreign investment, with an increase of 34% to 560 projects. This is two less than the France, but well below the UK, where 728 projects were funded by investors outside Europe.

The Baltic countries, the Poland, the Hungary and the Russia also saw strong growth of foreign investment "which reflects the strong economic recovery in the region and its increasing attraction of business", Ernst & Young said.

However, Portugal, Greece and the Spain have seen a fall in numbers of project.

The automotive manufacturing sector saw the increase in large investment, with services to businesses, renewable energy and also receiving software.

Forward, the report said business leaders saw close as a second Western Europe to China as the most attractive region to invest in, but expected that the two be just as attractive in three years.

"Europe is now in competition as a top destination for investment with the rapid growth of economies," said Mr. Otty.

Figures published by the Organization of the United Nations at the beginning of this year showed that, in terms of cash, the France was the top recipient of foreign investment in 2010.

Measured by market capitalization, the country has attracted $57 taken (taking of ￡ 35; 40 6bn euros) in 2010, a slight drop on 2009 levels, but still more than any other European country.

The Belgium was the next largest recipient, with $50. 5bn investment, followed by the United Kingdom ($ 46 MD) and Germany ($34 taking).