Bain

François Hollande (Getty)

François Hollande’s Socialist government is desperate to get across a message, not least to foreign investors, that France’s economy is in recovery mode and that it is now set to start reducing the heavy tax burden it has heaped on companies.

This sunny prospect received a cold shower on Tuesday in the form of a survey of American businesses in France.

Although respondents saw some improvement in economic conditions over the next two years after a worse-than-anticipated 2013, only 19 per cent expected to increase employment, while 26 per cent said they would be reducing jobs.

More worrying for Mr Hollande, the survey showed a sharp slide in the perception of France as a good place to invest.