investing in champagne -ardenne - CCI Champagne
Transcription
investing in champagne -ardenne - CCI Champagne
INVESTING IN CHAMPAGNE-ARDENNE SEPTEMBER 2004 10, rue de Chastillon – Boîte postale 537 – 51011 CHÂLONS-EN-CHAMPAGNE cedex T: +33 (0)3.26.69.33.40 F: +33 (0)3.26.69.33.69 e-mail: [email protected] Website: www.champagne-ardenne.cci.fr SUMMARY Foreword .............................................................................................................................................................................................................. 3 Champagne-Ardenne: Factors essential to your economic success........................ 4 High-performance economic environment ....................................................................................................................................................... 5 Sound population base ............................................................................................................................................................................................................. 5 Productivity exceeding national average .................................................................................................................................................................................. 6 Comparison with EU confirms sound level of regional productivity.......................................................................................................................................... 7 Thriving export trade ................................................................................................................................................................................................................. 8 Highly developed infrastructure network .................................................................................................................................................................................. 9 Region committed to IT, communications and knowledge ..................................................................................................................................................... 11 Favourable tax structure ......................................................................................................................................................................................................... 12 Diversified economic backdrop ....................................................................................................................................................................... 14 Economy building on diversity (1/2)........................................................................................................................................................................................ 14 Economy building on diversity (2/2)........................................................................................................................................................................................ 15 Region increasingly coveted by international investors.......................................................................................................................................................... 16 Champagne-Ardenne ripe with foreign investment (1/2)........................................................................................................................................................ 17 Champagne-Ardenne ripe with foreign investment (2/2)........................................................................................................................................................ 18 Real human potential ........................................................................................................................................................................................ 19 More industrially-oriented labour force ................................................................................................................................................................................... 19 Low turnover ........................................................................................................................................................................................................................... 20 Readily available human potential .......................................................................................................................................................................................... 21 Qualified manpower at all levels of skills spectrum ................................................................................................................................................................ 22 Abundance of quality training and proficiency programmes................................................................................................................................................... 23 Region committed to educating youth .................................................................................................................................................................................... 24 Curricula adapted to families of foreign executives ................................................................................................................................................................ 24 Strategic, high-performance research centres ....................................................................................................................................................................... 25 Labour relations in France: Less complex than often imagined .............................. 26 Work contracts freely negotiated under French law ...................................................................................................................................... 27 Work time ........................................................................................................................................................................................................... 27 Legal work period .............................................................................................................................................................................................. 27 Right of EU nationals to work in France.......................................................................................................................................................... 28 Authorizaton to work in France for non-EU nationals ................................................................................................................................... 28 Setting up a business in Champagne-Ardenne .............................................................................................................................................. 29 Champagne-Ardenne: For exceptional quality of life................................................. 31 Culture ................................................................................................................................................................................................................ 32 Exceptional heritage.......................................................................................................................................................................................... 32 Outdoor leisure .................................................................................................................................................................................................. 33 Gastronomy and the art of fine dining............................................................................................................................................................. 33 Shopping ............................................................................................................................................................................................................ 33 Sport ................................................................................................................................................................................................................... 34 Medical and community facilties...................................................................................................................................................................... 34 Conclusion...................................................................................................................... 35 Foreword Although the people of Champagne-Ardenne—business leaders, local developers and the general public—are keenly aware of the region’s many attributes, Champagne-Ardenne itself, not to mention the region’s economic potential, are little known and rarely the subject of learned studies and diagnostic exercises. All too often, studies that are conducted tend to focus on the region’s weak points, with little or no mention of the abundance of Champagne-Ardenne strengths. As individual regions take their own economic destinies in hand and become more competitive than ever before, we must strive to showcase the outstanding comparative advantages of Champagne-Ardenne for the outside world to see. The region merits being cast in the most favourable light possible, if only because certain sectors of endeavour achieve greater levels of success in Champagne-Ardenne than in locations elsewhere. This is not to say that we have been spared the problems associated with ongoing economic change. Quite the contrary! As a result, we have garnered a collective willingness to face our challenges square on with courage and the determination to win. The region’s inherent qualities have allowed us to develop an industrial base of national and international renown. To this, has been added exceptional tangible and intangible investment in infrastructure, research centres and training facilities with a view to facilitating wealth creation and spurring development across the region. The time has indeed come for Champagne-Ardenne to stand up and be counted. This document, available to all, seeks to point up the distinctive attributes of the regional economy. Rather than attempting to be exhaustive, contents are designed to evolve over time and to be enriched by the contributions of all who play a role in the economy of Champagne-Ardenne. Chamber of Commerce Champagne-Ardennes September 2004 Chamber of Commerce Champagne-Ardennes 3 C HAMPAGNE-ARDENNE: FA CTOR S ESSENTI AL TO Y OUR ECONOMI C SUCCESS Chamber of Commerce Champagne-Ardennes 4 Champagne-Ardenne: Factors essential to your economic success High-performance economic environment Sound population base The Champagne-Ardenne region extends over an area of 25 606 km², boasts a population of 1 342 3631 inhabitants and comes replete with an abundance of human resources which ranks France second in Europe based on the number of inhabitants. France experienced positive natural demographic growth of 3.7 per thousand inhabitants in the last 10 years, bringing aggregate demographic growth to 4.8 per 1000, whereas a number of neighbouring countries continue to post negative growth. Champagne-Ardenne has successfully stabilized population levels and sustained largely positive growth figures compared with other EU nations. This rise in human capital has, in turn, generated an increase in available manpower. Demographic growth in EU countries Geographic area Natural growth (per 1000 inhab.) Population (millions of inhabitants) France 3.7 59.9 Champagne-Ardenne 3.4 1.3 Netherlands 3.7 16.3 Luxembourg 3.6 0.5 United Kingdom 1.1 59.5 Belgium 0.5 10.4 Poland -0.1 38.2 Germany -1.5 82.5 Hungary -3.5 10.1 Sources: Population et sociétés, monthly information bulletin published by National Institute of Demographic Studies, N° 398, February 2004 and National Institute for Statistics and Economic Studies (INSEE) 2004 1 Source: RP 1999 « Communes...Profils » National Institute for Statistics and Economic Studies (INSEE) Chamber of Commerce Champagne-Ardennes 5 Champagne-Ardenne: Factors essential to your economic success Productivity exceeding national average Gross domestic product (GDP) in Champagne-Ardenne in millions of euros Wealth creation in Champagne-Ardenne amounted to €28 577 million in 2002 and has grown steadily since 1996. Year ChampagneArdenne 1996 1997 1998 1999 2000 2001 2002 24 994 25 377 26 915 27 779 28 072 28 100 28 577 Gross domestic product per job in euros GDP per job in the region continues to grow, rising 15.6% between 1996 and 2002. When compared with wealth creation at the national level in France, regional performance in Champagne-Ardenne appears all the more remarkable. With a GDP of €57 643 per job, Champagne-Ardenne boasts a wealth creation capacity greater than the average for the French provinces (€56 452) and ranks 6th among the nation’s 22 major urban centres. Year 1996 1997 1998 1999 2000 2001 2002 ChampagneArdenne 49 884 51 116 54 292 55 307 55 350 55 923 57 643 French provinces 49 700 50 893 52 434 53 061 54 024 55 180 56 452 58 000 56 000 54 000 52 000 50 000 48 000 1996 1997 1998 1999 Champagne-Ardenne 2000 2001 2002 French provinces Source: National Institute for Statistics and Economic Studies (INSEE) 2004 Chamber of Commerce Champagne-Ardennes 6 Champagne-Ardenne: Factors essential to your economic success Comparison with EU confirms sound level of regional productivity Surveys conducted for investors consistently point to the sound productivity of the French labour force2. Moreover, according to European Commission estimates, hourly productivity of the labour force in France ranks among the best in the EU. This ranking is further substantiated in Champagne-Ardenne by a wealth creation figure greater than that observed elsewhere in France, Ile-deFrance excluded. The same holds true when examined from the standpoint of work time wealth creation. Indeed, the GDP per hour of work stands well above the EU average, making France one of the leading nations in terms of productivity. Productivity per hour of work (GDP in PPS3 per hour of work based on EU=100) Country Productivity per employed individual in 2004 Productivity approaching 118* in Champagne-Ardenne Belgium 116,8 France 112,6 Euro area (12 nations) 100,6 Year 2003 EU (15 nations) 100.0 Euro area (12 nations) 102.4 France 123.1 Belgium 120.1 United States 116.4 Netherlands 112.8 104.4 UE (15 nations) 100 United Kingdom 97,8 Germany 96,2 Germany Netherlands 94,7 United Kingdom 90.0 Spain 83.8 Japan 78.1 Czech Republic 43.7 89,5 Japan 65,3 Hungary 55,4 Czech Republic 0 20 40 60 80 100 120 Source: Eurostat, 2004 Source: Eurostat, 2004 and OER estimate for 2004 3 2 French Agency for International Investment Base figures are expressed as a purchasing power standard (PPS), which is to say in a common unit designed to eliminate price level variances from one country to the next Chamber of Commerce Champagne-Ardennes 7 Champagne-Ardenne: Factors essential to your economic success Thriving export trade Champagne-Ardenne generates a surplus trade balance of close to €2 billion. This sign of sound competitiveness in the international marketplace is further substantiated by a thriving export trade estimated at nearly €6.9 billion in 2002 alone. Profile of foreign trade with Champagne-Ardenne in 2002 Primary client and supplier nations: - Germany The wealth created by the region’s main primary exports, which include champagne, agrifood products, automotive equipment, pharmaceuticals and luxury items, ranks Champagne-Ardenne as the 5th most important region for exports in France. This thriving export trade provides proof positive of the extent to which the economy and people of Champagne-Ardenne focus on trade in the international forum. - Belgium - United Kingdom - Italy - Other: USA, Spain, Netherlands, Switzerland, Japan... Export development and trade balance in Champagne-Ardenne between 1995 and 2002 (in millions of euros) Exports Imports 42% Trade balance 12000 2700 10000 8000 1800 6000 4000 900 Exports 58% 2000 0 0 Source: French Customs Agency, 2002 1995 1996 1997 1998 1999 2000 2001 2002 Source: French Customs Agency Chamber of Commerce Champagne-Ardennes 8 Champagne-Ardenne: Factors essential to your economic success Highly developed infrastructure network Ripe with industrial potential and supported by a vast, highly developed infrastructure network, Champagne-Ardenne enjoys a strategic geographical location midway between the Greater Paris area, the Rhine Basin, centres in northern Europe and the Italian marketplace to the south. Champagne-Ardenne thus stands at the crossroads of national and EU-wide trade. Located at the crux of major east/west and north/south axes, Champagne-Ardenne boasts an extensive network of transport infrastructure: 4 North-South/East-West motorway connections: A26, A4, A5, A31, A34 and A24 Waterway infrastructure. Rail connections4: Paris-Strasbourg, Paris-Basel, Paris-Munich and Paris-Luxembourg. Beginning in 2006, the new high speed TGV Est line will link the region to Paris in a mere 45 minutes and to Charles-de-Gaulle airport in only 35 minutes. From Champagne-Ardenne station, travelling time to Lille will be 1 hour 25 minutes and to Strasbourg only 1 hour 45 minutes. Airport infrastructure: Vatry International Airport, the only dedicated cargo airport in Europe, provides the business community with direct integrated trimodal (air, rail, ground) services; regional airports in Reims, Troyes… Source: www.tgv-est.com Chamber of Commerce Champagne-Ardennes 9 Champagne-Ardenne: Factors essential to your economic success Key components of regional infrastructure Source: Skills Development Observatory (OPEQ), 2004 Chamber of Commerce Champagne-Ardennes 10 Champagne-Ardenne: Factors essential to your economic success Region committed to IT, communications and knowledge High speed Internet today represents a decidedly competitive advantage for any region. With coverage ranging between 60% and 75%, Champagne-Ardenne ranks among the top ten regions5 of France for high speed Internet availability. Coverage continues to expand and is expected to reach between 75% and 89% by 2005. The development of high speed Internet would appear to be particularly pronounced in France when comparisons are drawn with other nations of the European Community. France indeed posted the highest growth figures for the last six months of 2003. Growth in high speed Internet between 1 July 2003 and 1 January 2004 (in number of telephone lines) 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 Luxembourg Greece Irland Finland Danmark Austria Portugal Sw eden Belgium Netherlands Spain Germany United Kingdom Italy France Source: European Commission, COCOM, March 2004 (figures subject to validation) 5 Source: La Tribune, Friday, 5 March 2004 and Monday, 29 March 2004 Chamber of Commerce Champagne-Ardennes 11 Champagne-Ardenne: Factors essential to your economic success Favourable tax structure Low level of direct corporate income tax in France Tax regulations in France6 are designed to foster corporate investment, regional development and international expansion. With a view to providing foreign investors with protection against double taxation, France has signed tax treaties with over a hundred different nations. Direct corporate income tax accounts for only 2.2% of the GDP in France against nearly double that figure in both the United Kingdom (4.2%) and the Netherlands (4.6 %). Direct corporate income taxes as % of GDP 6,0% 4,6% 4,2% 3,5% 3,0% 2,2% UE Luxembourg Netherlands United Kingdom Belgium France 1,9% Germany Source: European Commission, 2000 6 www.AFII.fr Chamber of Commerce Champagne-Ardennes 12 Champagne-Ardenne: Factors essential to your economic success Regional tax burden among lowest With a direct tax burden7 standing at 1.10, Champagne-Ardenne ranks among the lowest in the nation and eighth overall in France. Champagne-Ardenne: 4th lowest regional business tax rate in France The Regional Council of Champagne-Ardenne boasts one of the lowest rates in France in terms of business taxes. With a taxation rate of 1.90%, the Champagne-Ardenne region falls below the French national average of 1.99% and ranks fourth overall in the nation. Move afoot to abolish regional business tax Business tax, which is to say tax amounts charged companies by local communities (communes, department, regions) totalled €538 million in Champagne-Ardenne in 2002. The President of the French Republic recently committed to support economic redevelopment and reduce unemployment by making employment a national government priority. Direct tax burden in 2002 0,48 à 0,88 0,89 à 1,18 1,19 à 1,30 1,31 à 1,69 Source: General Directorate for Local Communities (GDCL), produced by the Skills Development Observatory (OPEQ) 2004 7 A bill designed to substantiate the employment effort is to be tabled in the French National Assembly in the coming months. One of the key thrusts of this bill will be to phase out the current business tax. By 2005, the current tax will give way to a mechanism designed to enhance investment. Since 1999, the manner in which this tax is calculated has been revised and it is no longer calculated based on payroll. Direct tax burden: Direct tax income/direct tax potential Chamber of Commerce Champagne-Ardennes 13 Champagne-Ardenne: Factors essential to your economic success Diversified economic backdrop Economy building on diversity (1/2) Backed by an abundance of natural resources, recognized know-how and an impressive capacity to adapt, Champagne-Ardenne remains firmly committed to diversity in economic development. Agrifood industry: One of the key sectors of the regional economy, the agrifood industry employs some 25 000 persons in over 2000 companies, 259 of which employ over 10 workers. Many are branch operations of larger corporate groups such as McCain, Nestlé, Miko, E. Beghin Say, etc. Overall, the agrifood industry accounts for 38% of total exports in Champagne-Ardenne owing mainly to the production of prestige champagne wines. Champagne: Champagne is produced in over a hundred establishments throughout the region and exerts a major impact on the overall regional economy given the estimated 30 000 individuals employed in the sector (vineyards, winemaking, related trading activities, glassworks…). Production in 2003 amounted to over 300 million bottles. Champagne alone accounts for 21.6% of aggregate regional exports. Renowned champagne producers in the region include LVMH, Taittinger and Laurent Perrier to name but three. Automotive industry: Automotive activities are spread out across the region and include any number of equipment manufacturers and subcontractors. Champagne-Ardenne is indeed home to several world leaders in automotive equipment: Visteon, Valéo, Delphi and Plastic Omnium. The automotive network in the region is thriving and diverse, and includes forge, foundry and metalworking operations: PSA Peugeot-Citroën, 6th largest industrial group in the EU with a business volume of €44 181 million (largest group foundry employs 3000 individuals in the region); plastics, rubber and chemical manufacturers (Freudenberg, Kleber, Michelin…). Hence the automotive industry contributes handsomely to industrial growth in France and to the surplus trade balance in Champagne-Ardenne, representing 7.5% of aggregate regional exports. Chamber of Commerce Champagne-Ardennes 14 Champagne-Ardenne: Factors essential to your economic success Economy building on diversity (2/2) Packaging and processing: Growth pole par excellence, packaging and processing activities constitute a dynamic and significant development axis, ranking Champagne-Ardenne among the leading packaging producing regions in France. Supported by Packaging Valley, an association which groups together major companies, research centres and training facilities, the sector is one of the most highly structured in the region. Many institutions of higher learning such as the Upper School of Packaging and Processing Engineers (ESIEC) turn out specialized human resources of critical import to regional industry. Transport and logistics: Backed by an extensive infrastructure network and exceptional geographical location, Champagne-Ardenne is orienting economic development towards the transport and logistics sectors. Accordingly, considerable means, both human and financial, have been garnered to improve regional infrastructure and enhance sectoral programmes of study. To support development in this sector, an abundance of training programmes are available in transport and logistics. These programmes range from university and secondary school levels, through apprenticeship training, as well as CAP*-BEP** and DESS*** level curricula. With Vatry International Airport now in full expansion mode, Champagne-Ardenne is poised to provide regional businesses with seamless trimodal (air, rail, ground) goods handling operations from a single, leading edge location. *CAP: Secondary school level vocational training certificate **BEP: 2-year secondary school level vocational diploma ***DESS: university level post-graduate specialist vocational diploma Chamber of Commerce Champagne-Ardennes 15 Champagne-Ardenne: Factors essential to your economic success Region increasingly coveted by international investors Percentage of workforce employed by foreign-owned interests Alsace Picardie Centre Lorraine Fifth in France in terms of international penetration of industry, ChampagneArdenne ranks well above the French national average. Indeed, 35.4% of all wage earners in the industrial sector work for a foreign company in contrast to 31% at the national level. For the region, this means setup by nearly 200 foreign companies. 35,4% Champagne-Ardenne Midi-Pyrénées Haute-Normandie Bourgogne Provence-Alpes-Côte d'Azur Aquitaine France 31,0% Basse-Normandie Rhône-Alpes Ile-de-France Languedoc-Roussillon Champagne-Ardenne is also one of the regions which attracts the largest number of international investors, proof positive of the interest and confidence in regional drive and potential. Pays de la Loire Poitou-Charentes Nord - Pas-de-Calais Limousin Bretagne Auvergne Franche-Comté Corse 0% 10% 20% 30% 40% 50% Source: Ministry of Industry, Office of Industrial Studies and Statistics (SESSI), Regions 2003 Chamber of Commerce Champagne-Ardennes 16 Champagne-Ardenne: Factors essential to your economic success Champagne-Ardenne ripe with foreign investment (1/2) From the standpoint of direct foreign investment (DFI), France compares favourably with key neighbouring countries. In 20028, France, close behind China, ranked second in terms of the influx of foreign investment. With an average of €55 billion per year in foreign investment between 2000 and 2002, France attracted 5.2% of total direct foreign investment and 6.3% of that destined for areas benefiting from OECD involvement. According to an Ernst & Young study based on 17 qualitative criteria designed to measure a nation’s power of attraction for international investors, France’s overall power of attraction was found to stem mainly from the following: Influx of direct foreign investment in 2002 (in € billion) quality of labour force size of domestic market 56,0 54,7 41,3 quality of infrastructure 35,6 29,8 29,0 monetary stability 9,9 geographical location China France United States Germany Netherlands United Kingdom Japan Source: French Agency for International Investment (FAII) 8 Tableau de bord de l’attractivité Française, FaII, December 2003 Chamber of Commerce Champagne-Ardennes 17 Champagne-Ardenne: Factors essential to your economic success Champagne-Ardenne ripe with foreign investment (2/2) A total of 41.5% of aggregate industrial investment in Champagne-Ardenne stems from the operations of foreign-owned companies, against 36.7% for metropolitan France as a whole. This provides valuable insight into the level of interest the Champagne-Ardenne region commands with international investors. Impact of foreign setups on industrial investment in 2000 Moreover, this interest on behalf of international investors means that over 35% of all industrial workers in the Champagne-Ardenne region are employed by foreign-owned companies, thereby substantiating the increasing international focus of the workforce in the region. Impact of foreign setups on workforce in 2000 41,5% 36,7% 35,4% 31,0% ChampagneArdenne France Source: Ministry of Industry, Office of Industrial Studies and Statistics (SESSI), Regions 2003 ChampagneArdenne France Source: Ministry of Industry, Office of Industrial Studies and Statistics (SESSI), Regions 2003 Chamber of Commerce Champagne-Ardennes 18 Champagne-Ardenne: Factors essential to your economic success Real human potential More industrially-oriented labour force The Champagne-Ardenne region boasts a rate of industrialization which exceeds the French national average. Indeed, 21.3% of all workers in the region are employed in the industrial sector compared with 17% for France as a whole. The total number of wage earners in the region is estimated at 532 921. Champagne-Ardenne, the 6th leading industrialized region of France, ranks first for foundry operations, second for textile and apparel, third for intermediary goods and fourth for consumer goods Total employment per sector of activity in 2002 Services Trade Construction Champagne-Ardenne Industry France Agriculture 0% 10% 20% 30% 40% 50% 60% 70% Source: Employment estimates (non-final data), National Institute for Statistics and Economic Studies (INSEE), 2004 Chamber of Commerce Champagne-Ardennes 19 Champagne-Ardenne: Factors essential to your economic success Low turnover Labour turnover for 2001 Franche-Comté Champagne-Ardenne ranks 4th in France in terms of personnel stability and boasts one of the lowest turnover rates in the country. Turnover in Champagne-Ardenne currently stands at 34%9 against 42.3% nationally. In fact, regional turnover owes largely to job insecurity as opposed to voluntary resignations. Indeed, 56%10 of all terminations in ChampagneArdenne owe to the expiry of Fixed Term Contracts against 53% at the national level. This phenomenon is particularly evident in the instance of unskilled workers for whom the rate approaches 65% in Champagne-Ardenne compared with 66% in metropolitan France. Voluntary resignations in Champagne-Ardenne represent only 22.5% of all terminations, a figure which compares to 23.2% for metropolitan France. Alsace Limousin Champagne-Ardenne 34,0% Haute-Normandie Lorraine Centre Picardie Bourgogne Poitou-Charentes Auvergne Basse-Normandie Nord - Pas-de-Calais Pays de la Loire France 42,3% Rhône-Alpes Midi-Pyrénées Ile-de-France Bretagne Aquitaine Languedoc-Roussillon Provence-Alpes-Côte d'Azur Corse 0% 10% 20% 30% 40% 50% 60% Source: Ministry of Labour, DARES, Premières Synthèses, N°48.1, November 2003 9 Source: Ministry of Labour, DARES, Premières Synthèses, N°48.1, November 2003 10 Source: Ministry of Labour, DARES, DMMO/EMMO Chamber of Commerce Champagne-Ardennes 20 Champagne-Ardenne: Factors essential to your economic success Readily available human potential As at year-end 2003, 62 783 individuals in the Champagne-Ardenne region were in search of employment, which is to say 2.1% of the total number for France as a whole. For the 4th quarter of 2003, the unemployment rate in Champagne-Ardenne stood at 10% against 9.5% for metropolitan France. The region therefore possesses a pool of readily available individuals poised to satisfy the needs of companies operating in the area. The people of Champagne-Ardenne are Unemployment rates for January 2004 Geographical region January 2004 increasingly mobile from the standpoint of Spain 11.2 % Champagne-Ardenne 10.0 % France 9.5 % Germany 9.2 % Euro area 8.8 % Belgium 8.4 % EU15 8.0 % Denmark 6.1 % Sweden 6.0 % Austria 4.5 % Ireland 4.5 % Netherlands 4.5 % Luxembourg 3.9 % travel from home to place of employment. Indeed, some 52% work outside the community in which they live. Source: National Institute for Statistics and Economic Studies (INSEE), Flash Champagne-Ardenne, N°16-6 Sept 2003 Sources: Eurostat and DRETFP* * Regional Directorate for Labour, Employment and Vocational Training Chamber of Commerce Champagne-Ardennes 21 Champagne-Ardenne: Factors essential to your economic success Qualified manpower at all levels of skills spectrum Individuals in search of employment in Champagne-Ardenne span the full breadth of the skills spectrum. A total of 51.9% are salaried employees whereas a third are general workers. The region is home to a considerable number of semi-skilled workers in search of employment and who account for 3.4% of all job seekers in metropolitan France, compared with 2.1% for all skills combined. Nearly 23% of all persons in search of employment in ChampagneArdenne are aged 25 years and under, against 19.6% nationally in France. Job seekers by level of education Qualified employees 51,0% 44,2% CAP-BEP level Secondary level or equivalent 15,2% 17,2% Secondary +2 8,1% 10,8% Secondary +3 or more 5,4% 11,2% Job seekers per skills level Unspecified 32,2% 19,3% 15,2% Non-graduates 37,3% 19,7% Non-rated employees 11,7% Unspecified 30% 40% 50% 60% 63,7% 66,8% between 25 and 49 years 17,7% 10,9% 20% 22,9% 19,6% 25 years and under 18,6% 12,6% 10% Job seekers by age group 18,9% Skilled workers Managers and supervisors France 0,9% 1,3% 0% Unskilled and semi-skilled workers Champagne-Ardenne Champagne-Ardenne 50 years and above France 18,4% 0% 0,8% 13,4% Champagne-Ardenne 13,6% France 10% 20% 30% 40% 50% 60% 70% 1,1% Source: French National Employment Agency (ANPE), 2004 0% 5% 10% 15% 20% 25% Source: French National Employment Agency (ANPE), 2004 30% 35% 40% Chamber of Commerce Champagne-Ardennes 22 80% Champagne-Ardenne: Factors essential to your economic success Abundance of quality training and proficiency programmes The French government, the region and partners consistently seek to ensure that regional training and proficiency programmes are commensurate with the needs of businesses active in the region. This commitment to educating individuals based upon economic needs in Champagne-Ardenne is endorsed by institutions across the region which dispense a broad spectrum of training and proficiency programmes. The region is home to two highly renowned universities: multidisciplinary Université de Reims-ChampagneArdenne which provides some 21 000 individuals, young and old, with the full gamut of degree programmes ranging from undergraduate to masters and doctorate level studies in humanities and social sciences, arts, natural sciences, medicine…); and, specialized Université de Technologie de Troyes which offers a varied curriculum ranging from 2-year to engineer-level programmes. The region is also home to upper level management training programmes available through business schools which rank among the best: Reims School of Management, ESC de Troyes, and so on. Champagne-Ardenne further boasts engineering schools such as École Nationale Supérieure des Arts et Métiers (ENSAM – an upper level trades school), École Supérieure d’Ingénieurs en Emballage et Conditionnement (ESIEC – Upper School of Packaging and Processing Engineers) at Châlons-enChampagne, Université de Technologie de Troyes (UTT), Institute of Industrial Engineering Techniques (ITII) specializing in buildings, public works and mechanics applications, and dual-faceted Institut de Promotion Industrielle (IPI – Institute of Industrial Promotion) at Châlons-en-Champagne which provides production unit training. In parallel to general stream training programmes, the region provides a wealth of vocational and technical training. Accordingly, 15 000 young people are enrolled in regional vocational programmes leading to CAP, BEP or secondary school vocational diplomas. To these must be added a further 8000 apprentices from CAP to engineer level. The number of apprentices rose by over 47.6% in the 1990s compared with a national figure of only 42.2%.11 11 OECD Regional Overview: Champagne-Ardenne, France; OECD 2002 Chamber of Commerce Champagne-Ardennes 23 Champagne-Ardenne: Factors essential to your economic success Region committed to educating youth The education system in Champagne-Ardenne is highly diversified. The regional academy ranks 3rd among metropolitan academies for the ratio of students to teaching staff, which stands at 17 pupils per teacher at the primary level (6-10 years of age). Primary, secondary and upper level student population in Champagne-Ardenne (private and public) Establishments Number of Students Primary level pupils (up to 10 years of age) 139 963 Secondary level students (from 11 to 18 years of age…) 124 329 Students enrolled in institutions of higher learning 37 849 Source: National Ministry Education, Research and Technology, 2002-2003 School Year Curricula adapted to families of foreign executives To foster the integration of foreign managers, executives and their families, Académie de Reims together with the local communities has set up international programmes of study in English at Reims and in German at Châlons-en-Champagne from first year of primary to final year of secondary level schooling. These international programmes welcome children of foreign managers and executives, making it possible for these children and their families to settle more comfortably into the region. Chamber of Commerce Champagne-Ardennes 24 Champagne-Ardenne: Factors essential to your economic success Strategic, high-performance research centres Université de Reims, Université de Technologie de Troyes and the region’s engineering schools (ENSAM, ESIEC…) are structured in such a manner as to foster innovation, enhance the work ethic and promote technology transfer to the business sector. Champagne-Ardenne boasts four hubs of excellence which provide critical links between laboratory skills and corporate demands: Mechanics and Materials The region’s mechanics and materials hub (PMMC) groups together two regional universities, technical industrial centres such as CETIM (mechanics industries), CTIF (foundry), IFTH (textiles and apparel), CRITT MDTS (materials and plating). Together they study innovations essential to sectoral subcontractors. Packaging, processing and logistics Agrifood and agribusiness Eight research facilities including Europol Agro at Reims which focuses on three major thrusts: Development of new, non-food market opportunities for agro-resources; Champagne vineyards and wines (physical chemistry of effervescent wines, biological control, biomodelling...), Soil and water conservation (agronomy and environment). Within the ranks of National Centre for Technology Research: ESIEC at Reims, the only school in Europe to offer a 5-year post-secondary programme in packaging and processing engineering, a strategic specialty for the industrial and logistics sectors; INRA, which specializes in materials and food safety; Specialized institutions of higher learning; Industrial technical centres which specialize in all facets of packaging and processing. Medical biotechnology – health – biomaterials This hub groups together teams of professionals from CNRS, INSERM, the Biotechnology Institute of Troyes (IBT), the Sports Medicine Institute (IMS), CHRU and Université de Reims Champagne-Ardenne. Work is conducted based on a technology platform dedicated to living cell dynamics and the development of biomolecules. Biomaterials are also studied from the standpoint of interaction with host tissue. Chamber of Commerce Champagne-Ardennes 25 LABOUR RELATIONS IN FRANCE: LESS COMPLEX THAN OFTEN IM AGINED Chamber of Commerce Champagne-Ardennes 26 Labour Relations in France: Simpler than often imagined Employment contracts freely negotiated under French law The most common type of employment contract is what is known as the permanent employment contract or CDI, which has no fixed term. This contract is generally drafted and drawn up in the French language. In principle, contract clauses are freely negotiated by the parties insofar as they comply with the applicable provisions of the Labour Code or collective agreement in force. All employment contracts must detail employee compensation and job description, as well as the agreed term of the contract and place of work. Contracts may also provide for a probationary period. Compensation must, at the very least, be equal in amount to the minimum amount set out in the applicable collective agreement and to the index-linked minimum guaranteed wage (SMIC). Currently, SMIC stands at €7.19 gross per hour. The latter may be rounded out with employee benefits paid in kind and/or a profit-sharing plan. One of the characteristics specific to the labour market in France resides in the possibility of enjoying recourse to supplemental manpower to meet temporary needs. This possibility complements the various means available for structuring working hours. Permanent and interim contracts are governed under regulations limiting recourse to cases provided for by law and a contract term of a maximum of 18 months. These contracts constitute an effective means for businesses to meet fluctuating needs. France indeed ranks second only to the United States in terms of temporary employment opportunities Work time organization France offers considerable flexibility in matters of work time organization, the object being to allow businesses to optimize the use of production equipment and thereby boost productivity. Legal working hours The legal work period in France is 35 actual hours per week or 1600 hours per year in businesses employing over 20 salaried wage earners. Any time worked in excess of one or other of these limits is considered overtime and subject to a higher rate of pay. Authorized overtime quotas are set out in applicable collective and industrywide agreements. Employees may work a maximum of 10 hours per day or 48 hours per week, subject to an aggregate average of 44 hours per week over a 12-week period (cf. work time modulation). The 35-hour work week regulation does not apply to executives and managers whose primary activities are unrelated to production. These individuals are restricted to a maximum of 13 hours per day and 217 days per year (generally referred to as the ‘day package’ system. Chamber of Commerce Champagne-Ardennes 27 Labour Relations in France: Simpler than often imagined Right of EU nationals to work in France Authorization to work in France for non-EU nationals By virtue of provisions relating to the free movement of workers set out in Article 39 and thereafter in the TEC12, EU or EEA13 nationals do not require authorization prior to accepting employment in France. Potential employees must be in possession of a valid stay document or apply for such a document from the French consulate in his or her place of residence. Employers are responsible for ensuring that all such employees are in possession of the proper administrative and employment documents. However, several administrative formalities are required of workers: For employment of less than three months’ duration, one must present a statement of hiring signed by the employer; For employment of between three and twelve months’ duration, one must apply for a residency permit to be automatically issued upon presentation of the statement of hiring signed by the employer; Employers must also file a request for entrance into France for potential employees with the local ANPE office. The file is then forwarded to the Department Directorate for Labour, Employment and Vocational Training (DDTEFP14) for approval. DDTEFP officials evaluate applications based on the following criteria: employer compliance with labour regulations For employment exceeding twelve months’ duration or for permanent contract (CDI) employment, one must apply for an EU or EEA residency permit to be issued automatically upon presentation of the statement of hiring signed by the employer. worker qualifications worker academic profile local employment situation (criterion not considered in instance of management level personnel) These formalities may be completed at the single-window service centre at a city or town hall, police station, prefecture or subprefecture office. NB: This procedure does not apply to workers from the latest EU member entrants who are subject to a 2-year transitional waiting period. At present, these workers are subject to the regulations applying to non-EU nationals. Upon approval by DDTEFP officials, the file is forwarded to the Office of International Migration which coordinates medical check-ups upon arrival in France and issues a permit. Upon presentation of a medical certificate and valid travel documents, the Foreign Service Bureau at the prefecture level issues a temporary stay document for salaried employees. NB: Various countries such as Algeria have signed special agreements with France. 12 13 Treaty establishing the European Community (TEC) European Economic Area (EEA) 14 Department Directorate for Labour, Employment and Vocational Training (DDTEFP) Chamber of Commerce Champagne-Ardennes 28 Labour Relations in France: Simpler than often imagined Setting up a Champagne-Ardenne business in Foreign business setups in Champagne-Ardenne take on a number of different forms and are largely based on investor development strategy. All possible solutions, ranging from temporary to permanent, are legally feasible and investors are free to modify setup plans over time subject to readily met conditions involving little cost outlay. Simple administrative procedure for setting up a business All setup formalities are conducted through a single-window Business Formalities Centre (CFE) operated by every Chamber of Industry and Commerce in France. Centre officials forward the file to all administrative bodies concerned while providing applicants with requisite counsel and support. Registering of branch operation with CFE The setup of a branch operation does not entail any special formalities. One must, however, ensure that the manager is in possession of a foreign merchant identity card as the case may be. Identical procedure for subsidiary operations Company agents must file an application to register a new company with the Business Formalities Centre (CFE), a service provided by the Chamber of Commerce and Industry in the community in which the new company will be situated. Comprehensive range of setup assistance available in Champagne-Ardenne A comprehensive range of setup assistance programmes and initiatives whether logistic, technical or financial in nature have been developed and are made available to companies seeking to set up in the Champagne-Ardenne region. Some 250 assistance programmes are available to companies working with one or other of the Chambers of Commerce and Industry in Champagne-Ardenne. These programmes, some public some private, originate at many different levels: European, national, regional, departmental or other. In each instance, helpful contact information is available through the CRCI Champagne-Ardenne15 website. Interested parties will find details on which individuals or organizations to contact, the bodies in charge of coordinating access to assistance, as well as the name of a local CCI consultant able to counsel you with regard to the most appropriate type of assistance given the nature of your project. 15 http://www.champagne-ardenne.cci.fr/fr/AidesFinancieres/ Chamber of Commerce Champagne-Ardennes 29 Labour Relations in France: Simpler than often imagined Comprehensive range of setup assistance Corporate setup or redevelopment assistance: Any number of public business setup or development mechanisms are designed to facilitate individual initiative. Assistance is primarily financial in nature16 and may include tax concessions, employer costs exoneration, even industry-specific consulting. To the foregoing are added regional mechanisms such as Envol.; Assistance with workplace safety and conditions Employment assistance: Assistance varies in nature but aims to reinforce and facilitate employment, and assist with staffing. sectoral assistance (agrifood, tourism…) Training assistance: Assistance includes aid in developing vocational training (Training Development Commitment), professional reclassification, human resource consulting, support for new activities … 16 Development and investment assistance: Various areas of Champagne-Ardenne are eligible for European aid: European Regional Development Fund (ERDF); European Social Fund (ESF), Objective 2; and, extends to Regional Consulting Assistance Fund … innovation and technology transfer assistance international development assistance short and long term financing assistance environmental protection assistance www.apce.com Chamber of Commerce Champagne-Ardennes 30 Collection CRT Champagne-Ardenne : Photos Oxley C HAMPAGNE-ARDENNE: F OR EXCEPTI ONA L QUALI TY OF LIFE Chamber of Commerce Champagne-Ardennes 31 CRCI Champagne-Ardenne Collection CRT Champagne-Ardenne : Photos Genaux Champagne-Ardenne : For exceptional quality of life World Puppet Theatre Festival Collection CRT Champagne-Ardenne : Photos Oxley Smiling Angel (Notre-Dame Cathedral, Reims) Château de Boursault Champagne-Ardenne : For exceptional quality of life Culture Culture is alive and well in Champagne-Ardenne. A broad array of quality stage performances, exhibitions and festivals draw enthusiastic audiences from near and far. The region is home to two upper-level schools of nationwide renown in France: the National Centre for the Circus Arts at Châlons-enChampagne and the School for the Advanced Study of the Art of Puppetry at Charleville-Mézières. Each is the only of one its kind in the country and each is respectively active in the circus and street theatre festival known as Furies and the International Puppetry Festival. Champagne-Ardenne hosts events of global magnitude throughout the year, including the Nights of Champagne festivities at Troyes, Summer Promenade Concerts and International Television Days at Reims, as well as the International Festival of Wildlife and Nature Photography, and International Poster and Graphic Arts Festival held in the Upper Marne area. The region further boasts a national repertory theatre, La Comédie de Reims, two national performing arts centres-one at Reims and the other at Châlons-en-Champagne, as well as a lyric theatre, Le Grand Théâtre de Reims. Some twenty or so professional choreography and theatre companies are also based in the region. Akademia, a regional vocal ensemble, continues to command attention in world musical circles. A total of 92 movie theatres are located in the Champagne-Ardenne area, including a number of multiple cinema complexes. Champagne-Ardenne ranks as one of the leading regions in France for books and literature. Children’s literature, a regional specialty, spawned the founding of the International Centre for Children’s Literature at Charleville-Mézières and provided the impetus for the Children’s Book Fair at Troyes. In addition, the region possesses three exceptional media libraries, one at each of Châlons-en-Champagne, Reims and Troyes. Exceptional heritage The Champagne-Ardenne landscape is dotted with edifices of considerable heritage value such as Notre-Dame Cathedral at Reims-where French royalty was crowned for over six centuries, the half-timber dwellings and abundance stained glass windows characteristic of Old Troyes, the feudal Château Fort de SedanEurope’s largest, and the ramparts at Langres. Roman and Gothic art, military architecture, castles, cathedrals, churches and fortifications together offer fascinating insights into the rich history and culture of the region. . Chamber of Commerce Champagne-Ardennes 32 Drappier Cellars Saint-Jean Quarter (Troyes) Collection CRT Champagne-Ardenne : Photo Feron Collection CRT Champagne-Ardenne : Photo Oxley Collection CRT Champagne-Ardenne : Photo Visual Impact Champagne-Ardenne : For exceptional quality of life Gorges de la Vingeanne Champagne-Ardenne : For exceptional quality of life Outdoor leisure Gastronomy and the art of fine dining The 10 000 hectares of waterways make Champagne-Ardenne a paradise for nature lovers and aficionados of outdoor leisure activities such as swimming, fishing, scuba diving, windsurfing, water skiing, canoeing, kayaking, jet skiing, sailing, and so on. The world renowned Houses of Champagne and bounty of gourmet specialties combine to impart exceptional epicurean notoriety to the region. Expertly developed lodging and dining infrastructure attracts a broad mix of leisure and business clientele. Bird watchers from the around the world come to the region to observe over 250 species of migratory waterfowl. The recent opening at Reims of the Institute for the Advanced Study of Taste, Gastronomy and the Art of Fine Dining (IHEGGAT) speaks volumes about the region’s influence in gastronomical circles. The Der Lakes—often referred to as inland seas—and Orient Forest constitute resort facilities of exceptional quality. Nigloland, the 3rd largest entertainment theme park in France, is located next to the regional nature park. Cycling, hiking and horseback riding through legendary forests and across the rolling countryside provide outdoor enthusiasts with the opportunity to experience the natural beauty of the region, including Reims Mountain and the famed dwarf beech stand above Verzy known as the Faux de Verzy. Pleasure boating is also a much prized, much practised recreational pastime on Champagne-Ardenne’s rivers and canals. Shopping With 1250 stores some 300 m² in size or larger, ChampagneArdenne is home to a steadily growing, performance-oriented commercial base. The region’s main urban centres offer inhabitants thriving central shopping districts featuring a mix of specialty shops and department stores. Troyes, now known for its many factory outlets, has become a popular destination for shoppers from across France and northern Europe. The largest centre of its kind on the continent, the Troyes outlet facilities feature over 85 000 m² of floorspace and offer an exceptional selection of designer clothing and luxury prêt-à-porter fashions. Another decided advantage for Champagne-Ardenne consumers is the region’s geographical proximity to the Greater Paris area… a mere one hour thirty minutes away by car. Chamber of Commerce Champagne-Ardennes 33 Collection CRT Champagne-Ardenne : Photo Sivade Collection CRT Champagne-Ardenne : Photo Oxley Collection Office de Tourisme du Lac du Der : Photo Bourguignon. Champagne-Ardenne : For exceptional quality of life Champagne-Ardenne : For exceptional quality of life Sport Medical and community facilities Facilities in Champagne-Ardenne cover the full spectrum of sporting disciplines and include 10 golf courses, 43 swimming pools—several of which are Olympic in size, 143 equestrian centres, a hundred or more tennis clubs, water sports venues and even cross-country ski trails in the Ardennes. Champagne-Ardenne is well endowed with medical facilities which include the Regional University Medical Centre (CHRU) at Reims, 34 hospitals spread out over the four departments, and 18 private clinics for a total of 10 000 beds. Hunting and fishing are also highly popular with residents across the region. To enhance citizen awareness of leisure and competitive sporting activities available in the region, Champagne-Ardenne operates a sport and fitness information desk. The Regional University Medical Centre (CHRU) at Reims boasts the latest in diagnostic and therapeutic apparatus, including a recent generation positron emission scanner—the only one of its kind in Europe. Medical imaging equipment also abounds in ChampagneArdenne: 7 MIRs, 18 scanners, 10 gamma ray cameras and 11 particle accelerators. In the private sector, Courlancy Polyclinic at Reims ranks among the top ten clinics in France. The region is also well equipped from the standpoint of day nurseries and drop-in daycare facilities for toddlers and preschoolers. Champagne-Ardenne is further home to a hot springs and spa complex. The unique, natural facility at Bourbonne-les-Bainsdates dates back some 2000 years and ranks as the leading facility in eastern France. Chamber of Commerce Champagne-Ardennes 34 CONCLUSION Boasting a wealth of strategic advantages, Champagne-Ardenne is particularly well poised to help you achieve business success. The region’s key attributes include as follows: performance-oriented economic environment global business mindset extensive infrastructure strategic geographical location in the heart of Europe diversified economic base human resource potential exceptional quality of life In Champagne-Ardenne, you will find a dedicated coalition of partners—Chambers of Industry and Commerce, government organizations, regional authorities and municipal bodies—ready and willing to take all action as required to facilitate setup and integration into the region. Chamber of Commerce Champagne-Ardennes 35