Deposits on Livrets A and Livrets de développement durable et solidaire (LDDS) increased by almost 3.5 billion euros in February. Parliamentarians wish to draw on these savings to pay for major nuclear power plant construction programs, or for the war economy.
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The government is looking for money and the savings of the French would be an interesting avenue, especially as the French nest egg continues to fill up well, according to the latest figures from the Caisse des Dépôts. (CDC), published Wednesday March 20. The Livret A and its little brother the Sustainable and Solidarity Development Booklet (LDDS) increased by almost 3.5 billion euros last month. In fact, the French put more money into their accounts than they took out. This is not new: when they can put money aside, households fill their nest egg, as a precaution, for fear of the future or for fear of hard times!
Today, nearly 8 out of 10 French people have a Livret A. The government has certainly capped its rate at 3% but even in times of high inflation, the Livret A remains popular. It is a secure, tax-free, flexible investment. With inflation slowing and falling below 3%, the yield will become positive again. The saver will really benefit. Enough to further increase the savings rate, the share that each French person puts aside. In France, it today reaches 18%, which is a lot. It was 15%, before the pandemic.
A windfall of 570 billion euros
This money in the accounts interests the government, because in total between the Livret A and the LDDS represent more than 570 billion euros which remain inactive. Money which is not injected into the real economy, which is not used to consume. We remind you that consumption is the primary engine of our growth. This money is also not invested in projects or equipment, hence the idea of directing these sums into nuclear power or defense, for example.
Normally, Livret A is earmarked to finance the construction of social housing, but as the State no longer has money and is very in debt, parliamentarians have put forward the idea of drawing from Livret A to pay for major programs. construction of nuclear power plants, or for the war economy. Ten days ago, the Senate adopted a bill on financing companies in the defense industry. The text must still go to the National Assembly to be adopted, but it is not certain that it will obtain a majority.