The director general of the Caisse des dépôts et des consignations was the guest of “8:30 a.m. franceinfo”, Tuesday April 25, 2023.
Eric Lombard, Director general of the Caisse des dépôts et des consignations, was the guest of the 8:30 a.m. france infoTuesday April 25, 2023. Inflation, debt, social housing, Orpea… He answered questions from Marc Fauvelle and Salhia Brakhlia.
Inflation: “It will be difficult to distribute purchasing power as prices rise rapidly”
“It will be difficult to distribute purchasing power, while prices are rising rapidly”, estimates Éric Lombard, while inflation reached 5.7% over one year in France in March, according to a final estimate from INSEE. The managing director of Caisse des Dépôts believes that this surge in prices “will probably last a few more months, probably until early next year”. But Éric Lombard considers that the “fall in unemployment” and the rise in “employment rate of seniors” are very important elements, not to mention the future pension reform: “Working time will be extended, which will have a favorable economic impact”he says.
Debt: “Returning to 3% annual deficit is not austerity but good management”
France “the annual deficit is almost 5%, going back to 3% is not austerity, it’s good management”, launches the general manager of the Caisse des dépôts. It quantifies the French debt at “3 trillion euros” and evokes a “debt ratio well above 100% of GDP”. Eric Lombard therefore judges “need to be more rigorous in public spending”. He recognizes that this represents “a big effort to make, especially since our country has been used for many years to spend more than it receives in the form of taxes and miscellaneous revenue”.
Livret A: the Caisse des dépôts pleads for a rate of remuneration “at 3% over time”
“What explains the growth of Livret A are transfers” of funds from other deposits, explains Éric Lombard, while the Livret A account had its best first quarter since 2009, earning nearly 20 billion euros. This record can also be explained by the rate of remuneration which reached 3%. Faced with inflation, Éric Lombard would like this rate to “remains stable over time”. He thinks it says that “when inflation is going to decrease this rate will go down, but it will not be for now”. He also explains that the Livret A allows in particular to finance the “social housing” as well as the revival of nuclear energy.
Social housing: “We must build at least 100,000 HLM per year”
“We need to build at least 100,000 HLMs per year, and even more like 110,000”, believes Eric Lombard. He regrets that last year “85,000” social housing has been built and fears that “this year, we are at the same level, which is honourable, but not enough”. Éric Lombard therefore calls on the “elected to mobilize”and this all the more so as currently “more than 2 million people are waiting for social housing”. “We must build on wasteland, build at height, we must give buildings a second life”he says.
Ecological transition: “One in five renewable energy projects is financed by Caisse des dépôts”
“One out of five renewable energy projects, such as solar and wind power, is financed by the Caisse des dépôts”, assures its managing director Éric Lombard. He considers that ecology must be “an absolute priority” and that he “we must not compromise on ecological transformation”. He thus affirms that the Caisse des dépôts, the financial arm of the State, finances in particular “the energy renovation of social housing, the renovation of public buildings or the greening of public transport fleets”. Éric Lombard ensures that the Caisse des dépôts “has the means” to finance “the green industries of tomorrow”but for that “we need to have more entrepreneurs, more committed people”.
Orpea: without the intervention of the Caisse des dépôts, “the company would have been put into liquidation”
“Without us, the company would probably have gone into liquidation, which poses an unacceptable social and human problem”estimates the director general of the Caisse des dépôts, which will take control of Orpea, a year after the release of the book-investigation The Gravediggers by Victor Castanet. The financial arm of the state intends to ensure that the retirement home group is “less profitable than before” : “There was a desired operating margin of around 25%, we don’t ask for more than 20%”, explains Eric Lombard. He affirms that “the rate of supervisors will rise above 7, whereas today it is 6 for 10 residents”. “We want it to become an ethical group”supports the general manager of the Caisse des dépôts.
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