Amendment raises Livret A limit

The French National Assembly's Finance Committee approved an amendment on October 8 to increase the ceiling on the Livret A savings account from 22,950 euros to 30,000 euros. The proposal was initially introduced by Minister of Ecological Transition Monique Barbut in September and submitted by deputy Éric Coquerel of the LFI party.

Funds to support social housing

The amendment would allow an additional 5 billion euros in deposits, which would be used to fund loans for renovating social housing. It also proposes increasing the share of these funds that go to the Caisse des dépôts et consignations, a public financial institution that currently centralizes 59.5% of Livret A funds, with the remaining 40.5% managed by banks for reinvestment in SMEs.

Banks oppose the measure

The French Banking Federation (FBF), representing banks, opposes the measure. In September, FBF president Olivier Gavalda argued that raising the ceiling would "lock up more savings in liquid and guaranteed investments rather than in long-term investments that businesses need."

History of opposition

The FBF previously opposed a similar increase in 2012 when the ceiling was raised from 19,125 euros to 22,950 euros. The FBF also claims that raising the ceiling would result in more interest escaping taxation, with RMC Conso estimating that at the current rate of 1.7%, the additional interest could be up to 115 euros.

Limited impact on average savers

According to the Bank of France's latest report on regulated savings, only 15% of Livrets A have a credit balance at the current ceiling, suggesting the measure would mainly benefit the wealthiest savers.

Amendment included in finance law

The amendment is included in the 2027 finance law, which must be examined in plenary session at the National Assembly. The first reading in public session begins on October 13, starting from the original government text that does not include the amendment.

Debates expected on amendment

It is expected that deputies will resubmit the amendment during this session, but the measure remains far from final adoption. The debate highlights the tension between supporting social housing and ensuring sufficient funding for business investments.