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Foreign Investment Projects in Europe Climbed in 2011, E&Y Says

The number of projects in Europe that drew foreign investment rose in 2011 even as the region grappled with a sovereign-debt crisis, Ernst & Young said.

The total number of projects rose to 3,906 last year from 3,757 in 2010, Ernst & Young said in its annual survey released today, without stating the value of investments received. Jobs created as a result climbed 15 percent in 2011, it said.

The U.S. remains the largest investor in Europe, with the U.K. continuing to be the favorite destination, according to the report. Germany overtook France to come in second, with business services, software and automotive sectors drawing the greatest interest in the region, it said.

“Despite the current turmoil in Europe, its fundamental strengths continue to endure,” Marc Lhermitte, the London-based Ernst & Young partner who wrote the report, said in a statement. “However, given the current economic climate it remains to be seen if this will hold true for the rest of the year.”

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