Livret A savings account ceiling increase France, Digi Mart USA News (France): The French government is seriously considering raising the ceiling of the Livret A, the country’s most popular savings account. The cap currently stands at €22,950, and Prime Minister Sébastien Lecornu confirmed the plan on Wednesday, November 3, in the National Assembly.
Lecornu said a final round of consultation is still underway with the banking sector, the Ministry of Economy in Bercy and the Caisse des Dépôts, with a range of €25,000 to €30,000 under review. He said Economy Minister Roland Lescure would present the decision in the coming weeks.
Lecornu also said the government intends to go further than current financing in order to fund the plan and program for adapting public buildings and infrastructure to climate change. He noted that roughly 83 or 84 percent of French people hold a Livret A with funds deposited in it.
Les Échos first reported this option on October 29. The state is considering offering reduced-rate loans to local authorities through the Banque des Territoires, which is attached to the Caisse des Dépôts.
That institution already supports social housing, nuclear energy and other local spending, and its funds are limited.
The Savings Fund is financed by 60 percent of the funds from the Livret A and the Livret de développement durable et solidaire. According to the report, raising the ceiling would allow the Banque des Territoires to lend more.
The Caisse des Dépôts and, reportedly, the Prime Minister and the President of the Republic support the option, while the Ministry of Economy does not, arguing that the Livret A already finances many other missions.
French banks also oppose the idea. The Fédération bancaire française said raising the cap would increase public spending for the wealthiest Livret A holders at the expense of those investing in the energy transition.
Banks argue that the regulated savings rate costs them considerably more than taxable savings accounts.
The matter is not yet settled. The change could be implemented quickly through a simple decree from Bercy and would probably take effect February 1.
A fairly ambitious increase in the Livret A interest rate is also being seriously considered for that date.
