Business · Economy · 4 hrs ago
France plans to raise the Livret A savings limit in February
French Prime Minister Sébastien Lecornu announced a higher Livret A savings cap on Tuesday.
The cap is currently €22,950, and is due to rise in February to between €25,000 and €30,000.
The Livret A is a widely used French savings account, and the government says the extra capacity can mobilise household savings.
It wants money from these regulated savings accounts to support public infrastructure, including climate adaptation, as well as new nuclear reactors; the funds have historically helped finance social housing.
Banks have objected that a higher cap could draw savings away from long-term investment needed by businesses.
Economy Minister Roland Lescure will confirm the exact cap in the coming weeks after further talks with banks and the Caisse des dépôts.
Prime Minister Sébastien Lecornu announced that France will raise the Livret A savings cap in February to between €25,000 and €30,000, from €22,950.
The change will coincide with an increase to the account’s interest rate, though the new rate has not been specified.
The government says the higher cap will help mobilise savings to fund public infrastructure and climate adaptation, as well as new nuclear reactors.
Economy Minister Roland Lescure is expected to set the new cap after further discussions with banks and the Caisse des dépôts.
The banking federation opposes raising the cap, while a left-wing and civil-society coalition has objected to using regulated savings for nuclear reactors.
- Who
- Prime Minister Sébastien Lecornu announced the change.
- What
- The Livret A cap will rise to between €25,000 and €30,000, from €22,950. Its interest rate is also due to increase.
- When
- The change is planned for February; the year was not stated.
- Where
- The announcement was made at the National Assembly in France.
- Why
- The government says the change will help mobilise savings for public infrastructure, climate adaptation and nuclear reactors.
French government
French Banking Federation
Use of Livret A savings
French government
The government wants to mobilise savings for public infrastructure, climate adaptation and new nuclear reactors.
French Banking Federation
The federation says raising the cap is not a good solution and could direct more savings into liquid, guaranteed accounts instead of long-term investments businesses need.
Sébastien Lecornu announced the planned cap increase during questions to the government at the National Assembly.
Economy Minister Roland Lescure is expected to specify the new cap after further consultation with banks and the Caisse des dépôts.
The cap increase and an interest-rate update are planned to take effect.
- Current cap
- €22,950
- Planned cap range
- €25,000–€30,000
- Planned implementation
- February
- Current interest rate
- 1.7%
- Livret A and LDDS savings
- €606.7 billion at the end of September
5 sources
Livret A : le gouvernement envisage une hausse du plafond à 30 000 euros
Vers un relèvement du plafond du Livret A en février
Livret A : le plafond sera relevé à « entre 25 000 et 30 000 euros », en février prochain, annonce Sébastien Lecornu
Il pourrait grimper à 30.000 euros: Sébastien Lecornu annonce que le plafond du Livret A va être relevé pour financer le nucléaire et l'adaptation au changement climatique
What people are saying
Practically 83 or 84% of French people have a Livret A with funds deposited
Faced with the housing crisis and the challenges of adapting to climate change, this is an enhanced capacity for action in the service of local areas
Raising the Livret A cap, whatever the objective pursued, is not a good solution
There is no magic money. So raising the Livret A cap recycles deposits that are elsewhere