Livret A ceiling proposal introduced

Eric Coquerel, a deputy from the LFI party, has proposed increasing the maximum amount allowed in the Livret A, a widely used French savings account, from 22,950 euros to 30,000 euros. The amendment, approved by the Finance Committee of the National Assembly as part of the 2027 finance bill, aims to raise 5 billion euros to fund loans for the renovation of social housing.

History of Livret A increases

The Livret A’s limit has been raised only once before, during the presidency of François Hollande. In 2012, the ceiling was increased from 15,300 euros to 19,125 euros, and then to 22,950 euros in 2013. A report by the Cercle de l'Epargne in 2026 noted that this change led to a surge in investments, as households moved money from taxed accounts to the tax-free Livret A.

Debate over who benefits

The proposal has sparked discussion about who would benefit most. Louise Girard, a market analyst at XTB France, points out that low-income households would not directly benefit, while wealthier individuals could increase their non-taxable savings to 60,000 euros. Mathieu Silva Santos of Goodvest questions whether the measure would disproportionately benefit the wealthy and whether it is an effective policy for savers.

Concerns over tax implications

Monique Barbut, the minister of Ecological Transition, had previously supported raising the ceiling. Olivier Gavalda, president of the French Banking Federation, warned that increasing the limit could allow interest to avoid taxes. The Cercle de l'Épargne estimates that this could lead to a "fiscal loss," which would be more significant if funds are moved from taxed investments rather than from current accounts.

Inflation and real returns

The current economic environment, marked by inflation, has raised concerns about the proposal’s relevance. Mathieu Silva Santos argues that saving too much in the Livret A could result in a zero or negative real return compared to inflation. At the current rate of 1.7%, a fully funded Livret A earns around 390 euros in interest annually, while a 30,000 euro account would earn about 510 euros.

Uncertainty about tax rules

The amendment does not clarify whether interest earned beyond the new ceiling would be tax-exempt. In 2026, the Court of Audit proposed taxing such interest at a flat rate of 31.4%. However, the amendment still needs approval from both the National Assembly and the Senate before it can be included in the final 2027 budget.