Livret A savings account cap increase to 30,000 euros, Digi Mart USA News (France): On November 3, the French prime minister announced plans to raise the cap on the Livret A savings account to between 25,000 and 30,000 euros by next February. The proposal would help finance the adaptation of public infrastructure, such as high schools, to climate change.
The government presents it as a solution, but the measure is drawing debate over whether savings can carry that role in a precarious economic context.
The Livret A is the savings product most favored by French households, but it has lost appeal since last year because its interest rate is considered unattractive. The rate is currently set at 1.7%.
It is reviewed each year in February and August, partly to account for inflation. As of the end of September, a total of 442.7 billion euros was deposited in Livret A accounts, and savers withdrew more money than they deposited during that month, reflecting a downward trend.
According to the Banque de France annual report on regulated savings, 83% of French people held a Livret A in 2025, but only 15% of accounts were filled to the maximum. Historically intended to finance social housing, the account could also be used for new nuclear reactors, a proposal criticized by the left and trade unions, as well as to finance the climate adaptation plan and program for public buildings and infrastructure, the prime minister said.
Part of the funds deposited supports long-term loans that finance social housing, the revitalization of city centers, water and heating networks, the thermal renovation of public buildings such as schools, clean transport, universities and hospitals, according to the Caisse des dépôts et consignations. Éric Dor, director of economic studies at the business school ISEG, said the Livret A is already one way the French population uses its savings to finance the state.
With an attractive rate and a higher cap, he said, it could attract more savings, and borrowing through the account would still cost the state or local authorities less than borrowing on their own.
Philippe Crevel, director of the think tank Cercle de l’épargne, estimated in a note that roughly 10 billion euros in additional deposits could be placed in Livret A accounts, generating nearly 5 billion euros in additional funding for the state and local authorities.
Some observers argue the real issue is not the cap but the interest rate, which remains below inflation, according to Marc Campi, director of Square Management. He said a revision of the rate would be a decisive factor in the account’s appeal.
Emmanuel Moulin, governor of the Banque de France, expressed skepticism at the Future of Finance conference in Paris, asking whether savers want liquid, tax-exempt products or longer-term savings that finance innovation, businesses and retirement.
Philippe Crevel also argued the measure does not support reducing France’s public debt. He said the higher volume of loans linked to the investments made with these funds would lead to a rise in public debt at a time when it is being asked to be controlled.
On the revenue side, he said raising the cap would represent a potential loss for the state, since the money would flow into this tax-exempt product instead of contributing to taxes through taxable investments or to VAT through consumption.
The measure, which is still being debated, could take effect in February, at the same time as the annual revaluation of the Livret A interest rate.
