New savings plan proposed by LFI
A new savings product called the Livret B has been proposed by the French political party La France Insoumise (LFI) as part of its 2027 counter-budget. The Livret B is described as a regulated savings account designed to capture more of the French people's savings and reinvest it in strategic projects such as the ecological transition, transportation, and industrial sovereignty.Key advocate of the proposal
Deputy Éric Coquerel, who is also the president of the Finance Committee of the National Assembly, has been a key advocate of this proposal. He stated that the goal is to make this investment "more interesting for the French than life insurance."How the Livret B differs from existing accounts
The Livret B would function differently from the existing Livret A, which is completely liquid, allowing money to be withdrawn or deposited at any time. In contrast, the Livret B is intended for medium and long-term savings with a minimum deposit duration.Sectors to be funded and vague details
It would be similar to the Livret A in terms of the sectors it would finance, and therefore in how it would remunerate its holders. According to the LFI counter-budget, the money would be "invested in the national interest," though this term remains somewhat vague. Éric Coquerel elaborated for Le Figaro that this would include sectors such as "digital sovereignty, ecological transition, space or even maritime economy."Funding through direct savings
The Livret B aims to invest directly in strategic sectors through the savings of the French rather than through public spending. Currently, public spending is financed by relatively expensive loans from institutional investors, with recent rates for OAT (Treasury bonds) reaching 4.9%.Remuneration details not specified
Instead of paying interest to institutional investors, the State would directly remunerate the savers who invest in the Livret B. However, the exact remuneration for the Livret B is not specified in the LFI counter-budget, nor has Éric Coquerel provided details on this matter.Attractiveness compared to life insurance
It is clear that the yield for the Livret B would not be as high as the OAT rates, as the idea behind the device is for the State to finance itself for less in order to reduce its debt. However, the savings product would need to be at least somewhat attractive to compete with life insurance.Potential changes to life insurance
In 2025, the euro funds of life insurance produced an average yield between 2.60 and 2.65%. To achieve such yields, these funds typically invest in a range of assets, including real estate and stocks. It seems challenging for the Livret B to achieve similar yields without similar diversification.Possible tax changes for life insurance
To make the Livret B more attractive, LFI does not exclude the possibility of making investments in life insurance less appealing if the party comes to power. Éric Coquerel mentioned this during the press presentation of the counter-budget, though he did not provide further details. This could involve strengthening the taxation of these investments, which currently benefit from advantageous tax treatment.
