France Télécoms' investment in TP accounts for one-third of all French investments since 1993 Courtesy of TP

When the Polish economy underwent its rapid, disorienting transformation in the early 1990s, French investors were initially reluctant to take advantage of the opportunities on offer.

“[French companies] waited and observed what others did first,” said Iwona Chojnowska-Haponik, director of the foreign investment department at the Polish Information and Foreign Investment Agency (PAIiIZ).

In the mid-1990s, however, French capital began to pour into Poland, with tire-maker Michelin, hypermarket chain Carrefour and building materials supplier Lafarge leading the charge. Total French FDI since 1993, when National Bank of Poland records began, puts the country in third place overall in terms of volume.

French involvement in Poland has been characterized by large-scale transactions. Indeed, one third of the €12 billion which French companies have invested is attributable to France Télécom’s 2000 purchase of a controlling stake in telecoms operator Telekomunikacja Polska.

This FDI inflow has translated into growth for Poland’s labor market. According to PAIiIZ, around 200,000 Poles are employed by corporations backed by French capital.

Investments have largely been concentrated in the manufacturing, retail and SME sectors, with firms from the latter increasingly concentrating on business process outsourcing projects.

“These are more complicated. French firms no longer just come here to build assembly lines – they now also develop their products here,” said Ms Chojnowska-Haponik.

And, despite their sluggish start, the French are not fair-weather investors.

“The flow of FDI from France did not slow down last year [during the economic crisis] and French firms also tend to reinvest,” Ms Chojnowska-Haponik added.

PAIiIZ is currently trying to secure 10 French investment projects, worth a combined E100 million, in the aviation, automotive, chemical and BPO sectors.