Close trade relations between Germany and France are reflected in the increase in direct investments in both countries. This includes the mergers of major company groups: The pharmaceutical company Aventis, for example, was created from the merger of Rhône-Poulenc and Hoechst. The aerospace group EADS evolved from the DASA and Aérospatiale-Matra merger. As the present French government continues to pursue a market-economy-oriented, employer-friendly policy, it is helping to curb the flight of capital, which has been intensifying for some years. Thus France is becoming more attractive as an economic location for foreign investors.
Whereas most French companies have been operating a rather restrained investment policy with regard to plant and machinery, a rise in investment is now expected. The implementation of tax cuts will also help sustain the hesitant economic recovery that began four years ago.

Key trade figures Germany/France 2003
Key figure	Value
Imports from France to Germany	47.6 bill. €
Exports from Germany to France	56.2 bill. €
Balance	8.6 bill. €
As % of total German exports	10.6
As % of total French exports	14.8
Position on the list of German trading partners export/import	1. / 1.

Source: INSEE (France)