France will raise the maximum amount savers can deposit in a Livret A account next February, Prime Minister Sébastien Lecornu announced on Tuesday. The new ceiling will be set between €25,000 and €30,000, up from the current limit of €22,950. The account’s current interest rate is 1.7%; the announcement said it would also be revised, but did not specify the new rate.
Economy Minister Roland Lescure is expected to confirm the precise ceiling in the coming weeks, following a final round of discussions with banks and Caisse des Dépôts, Lecornu said during questions to the government in the National Assembly.
The government says the change is intended to mobilise household savings through one of France’s best-known liquid savings products. Livret A deposits have traditionally helped fund social housing, and the government also plans to use the funds for projects including new nuclear reactors and climate adaptation work on public buildings and infrastructure. The deposits also support electricity and water networks, as well as renovations of schools and middle schools.
The announcement followed figures showing that savers withdrew €1.52 billion more from Livret A accounts than they deposited in September, according to data published by Caisse des Dépôts. A coalition of left-wing elected officials and civic and trade union organisations has called for the government to abandon plans to use regulated savings to finance new nuclear reactors, warning that this could weaken funding for social housing.
Sources: Le Monde Économie.