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‘Forget Silicon Valley, it’s better in France’

As work began on the "world's largest" tech incubator in Paris, French billionaire and telecom mogul Xavier Niel says despite the moribund French economy and the reputation of its bureaucracy, it's actually easier to start a business in France than Silicon Valley.

'Forget Silicon Valley, it's better in France'
Is is easier to start a business in France than Silicon Valley? Photo: Luke Ma/Flickr, AFP

On the occasion of the laying the ceremonial first brick of what he claims will be the world’s largest start-up incubator, Niel has been telling reporters why France is so great.

“It’s much easier to start a company in France than Silicon Valley where everybody copies you,” Niel, 47, told Europe 1 radio on Thursday. “In France there is support for starting a company. The grass is not greener on the other side.”

Niel knows what he's talking about. He founded Free, which is France's second largest internet provider and third biggest mobile phone service.

His €230 million incubator at Gare d’Austerlitz is to open in 2016 and will provide a range of services, advice and access to funding for entrepreneurs who have a great tech business idea, but little else.

The 33,000-square-metre space is to be home to 3,000 workers.

Niel agrees France has its problems, but notes that it has strengths that exist nowhere else.

“Of course the French system isn’t perfect, there’s only one company on the CAC 40 (France’s benchmark stock market) that is less than 30 years old when they make up 50 percent of the market in other countries,” Niel said.

But he also noted France’s reputation for high taxes isn’t deserved.

“It’s true, though it must sound bizarre, but I pay less in capital gains tax in France than my successful friends pay in the United States,” he said. “On top of that the best engineers are from here.”

He added: “When I travel, I always see French people working in high tech businesses. We train them well, they are great, they are famous throughout the world.”

And he's not afraid to go where the money is. The first business he founded was at age 19 sold sex-related chat services on France's now defunct internet precursor Minitel.

As France tries to convince the world that it’s open for business, and not dominated by stagnant Socialism and record unemployment, the incubator is getting a lot of support from the country’s ruling class.

Historically unpopular president François Hollande laid the ceremonial first brick on Wednesday the crowd of some 200 people in attendance included many of his government’s ministers.

Along with the appointment of an ex-banker to fix the economy and public relations visits to the UK and Germany, France has launched a charm offensive aimed at giving it a business-friendly image.

Niel says the truth about France has been obscured by nasty propensity to bash it in the press.

“The idea is that France is a fantastic place to start a company. People don’t realize it because we life in a world marred by ‘bashing’,” he told Europe 1. “But in France we have all the services needed to found a company.”

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INTERNET

EU greenlights €200M for Spain to bring super fast internet speeds to rural areas

Brussels has approved a plan which will bring high-speed broadband internet to the almost 1 in 10 people in Spain who live in underpopulated rural areas with poor connections, a way of also encouraging remote workers to move to dying villages. 

EU greenlights €200M for Spain to bring super fast internet speeds to rural areas
The medieval village of Banduxo in Asturias. Photo: Guillermo Alvarez/Pixabay

The European Commission has given Spain the green light to use €200 million of the funds allocated to the country through the Next Generation recovery plan to offer internet speeds of up to 300 Mbps (scalable to 1Gb per second) to rural areas with slow internet connections. 

According to Brussels, this measure will help guarantee download speeds of more than 100 Mbps for 100 percent of the Spanish population in 2025.

Around 8 percent of Spain’s population live in areas where speeds above 100Mbs are not available, mostly in the 6,800 countryside villages in Spain that have fewer than 5,000 inhabitants.

European Commission President Ursula von der Leyen plans to travel to Madrid on Wednesday June 16th to hand over to Prime Minister Pedro Sánchez the approved reform plan for Spain. 

Back in April, Spain outlined its Recovery and Resilience plan aimed at revitalising and modernising the Spanish economy following the coronavirus crisis, with €72 billion in EU grants over the next two years.

This includes green investments in energy transition and housing, boosting science and technology education and digital projects such as the fast-speed internet project which aims to avoid depopulation in rural areas. 

It’s worth noting that these plans set out €4.3 billion for broadband internet and 5G mobile network projects in rural areas in Spain, so this initial investment should be the first of many.

Over the past 50 years, Spain’s countryside has lost 28 percent of its population as Spaniards left to find jobs in the big cities. 

The gap has been widening ever since, local services and connections with the developed cities have worsened, and there are thousands of villages which have either been completely abandoned or are at risk of dying out. 

READ MORE:

How Spaniards are helping to save the country’s 4,200 villages at risk of extinction

rural depopulation spain

The pandemic has seen a considerable number of city dwellers in Spain move or consider a move to the countryside to gain space, peace and quiet and enjoy a less stressful life, especially as the advent of remote working in Spain can allow for this. 

Addressing the issue of poor internet connections is one of the best incentives for digital workers to move to the countryside, bringing with them their families, more business and a new lease of life for Spain’s villages.

READ ALSO:

Nine things you should know before moving to rural Spain

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