The money placed in the Livret A, known for financing social housing, will also partly finance the French defense industry. The project was in the pipeline and took shape on Tuesday, November 7, as part of the budget debate in the National Assembly.
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As part of the examination of the 2024 Budget in the National Assembly, the Prime Minister, Élisabeth Borne, on Tuesday, November 7, drew out article 49.3 for adoption without a vote by the deputies. Livret A and Sustainable and Solidarity Development Booklet (LDDS) will be able to finance our national defense companies.
Whether small, medium or large, all businesses are affected. It is a breath of fresh air for the armies and, above all, for the war economy. In this geopolitically tense period, with Ukraine and the high tensions in the Near and Middle East, France must be able to remain ready.
Realization of an old project
This is not the first time that this solution has been considered. A first attempt by several deputies took place this summer during the examination of the Military Programming Law. But the initiative was rejected by the Constitutional Council, ruling that the measure had no place in the military programming text. The parliamentarians returned to the charge within the framework of the Global Finance Bill, and this time, it passed, certainly with 49.3.
The fear was to see part of the money from Livret A which is usually intended to finance social housing diverted. But the use of Livret A savings is protected. It will not be misused because a lock has been created. It is not the sums managed by the Caisse des Dépôts intended for social housing which will be redirected towards the defense industry, but the other part, managed by private banks and not allocated to HLM (around 40% of the total).
The total available today is 510 billion euros, which corresponds to the money placed by the French in their Livret A and LDDS. Some 40% of 510 billion, this represents around 200 billion euros potentially available. A tidy sum which would take over from the credits, which private banks no longer want to grant to defense companies, by virtue of the social and environmental responsibility criteria to which they are obliged.