In this section, we focus on a selection of high and medium performers, who we feel reflect the diversity of investment situation in Europe.

Winners

• UK:

  The UK maintained its leadership in FDI projects and FDI jobs, which grew by 7% and 6% respectively. Investors came to the UK for its strength in services and increasingly its industry, investing in business services (14% of the projects received), machinery and equipment (11%), computers (7%) and software (7%).
  
  The UK remains a highly attractive destination given its position as a global player in the world economy and its capacity to reform a difficult economic situation. Furthermore, the weaker pound has enticed investors already considering the UK for service sector investments to evaluate its industrial potential as well.

• Germany:
  
  Investors increased their FDI projects in Germany to 560 project announcements, amplifying its total market share to 15% of FDI projects in Europe (from 12% in 2009).
  
  Investors are attracted to Germany for opportunities in business services (15%), machinery and equipment (9%) and software (9%), reflecting an economy that leads in industrial production and high value-added services. Investor confidence in Germany results from the country’s strong economic growth outlook (3.6%), sound fiscal policy and entrepreneurial culture.
• Poland:
  
  Another strong performer, Poland experienced a rapid rise of 40% in the number of FDI projects that it attracted. This resulted in a rise in Poland’s market share of job creation from 6% in 2009 to 9% in 2010.
  
  Poland has attracted investors in automotive (12%) and business services (8%). With strong economic growth prospects, low costs and growing numbers of consumers, Poland is a very attractive investment destination for industrial companies looking to locate in Europe.
• Hungary:
  
  The number of FDI project announcements soared by 38% and job creation from FDI grew by 20% to a total of 8,572. Investors came primarily to Hungary to invest in automotive (16%), but also in machinery and equipment (15%) and electronics (10%). Hungary attracts high value-added industrial investment, given its highly skilled labor force and its competitive cost base.
• Baltics:
  
  The number of projects has increased from 33 to 61 with Lithuania leading the region, with 31 project announcements. Investors come to the Baltics to invest in air transportation (25%), financial services (12%) and utilities (10%).

The top 15 European coutries for FDI

Source: Ernst & Young's European Investment Monitor 2011.
*Job creation for projects for which the information is available.

Mixed performance

• France:
  
  France captured 562 FDI projects in 2010 (6% more than 2010) and a 12% increase in job creation. However, France nearly lost its second position (by number of FDI projects) to Germany and its share of FDI in Europe softened from 16% to 15%. Investors came to France for business services (15%), software (9%) and machinery and equipment (9%). Despite its traditionally balanced appeal between services and industry, investors increasingly appear to see France as a service sector destination.
• Belgium:
  
  Belgium’s share of FDI projects in Europe has stagnated at 4% of the European total. Despite this stagnation, the number of projects has increased by 9% since 2009 and the number of jobs created by FDI increased by 19% to 4,010. Investors created jobs in the Belgian: automotive sector (20%), financial sector (17%) and business services sector (17%), demonstrating that the country remains attractive to investors in both industry and services.
• Ireland:
  
  Ireland’s share of FDI projects in Europe remained stable at 3%; however, the number of FDI projects increased by 36% (up to 114 FDI project announcements) and the number of jobs created reached 5,785. Surprisingly unfazed by Ireland’s financial troubles, investors invested primarily in business services (19%), software (11%) and insurance and pensions (10%). Investors continue to come to Ireland primarily for its low tax rate, its highly skilled workers and, since 2008, its increasing cost competitiveness.
• Czech Republic:
  
  FDI projects have increased by 16% in the country and the number of jobs created has increased by 22%. Investors went to the Czech Republic to invest in automotive (12 FDI projects) and business services (9 projects) as well as logistics (7 projects). Investors remain attracted to the Czech Republic’s good quality infrastructure and high-quality labor force.
• Spain:
  
  The number of FDI projects in Spain declined in 2010 by 2% while job creation reached 7,723. Spain’s share of FDI projects in Europe also slipped from 5% in 2009 to 4% in 2010. The dichotomy between the decline in FDI projects and the increase in job creation resulted from three automotive projects that made up 70% of the jobs created. Despite the impact of the automotive projects, the majority of investors came to Spain for business services (17%) and software (14%).
• Russia:
  
  Although Russia attracted an 18% increase in FDI projects, it suffered a decline in job creation. Furthermore, Russia’s share of investment projects in Europe remained stagnant at 5% (in number of projects). Investors came to Russia to invest in automotive (33%), chemicals (19%) and wood (13%). Although broadening its attractiveness, greenfield investors primarily came to Russia for raw materials and industrial projects.
• Italy:
  
  Despite a 3% increase in investment projects, Italy records 1,328 fewer jobs created on the previous year. Furthermore, its share of FDI projects remained stagnant at 3%. Investors came to Italy for projects in business services (12%), financial services (10%) and software (9%).

FDI: Western Europe* and Central and Eastern European** split

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