How Does the New Savings Account to Support the Industry Work?
Michel Barnier proposed the creation of a savings account dedicated to industry during his general policy address on Tuesday, October 1. This idea, which has been raised in the past, aims to mobilize French citizens’ savings to support industrial growth.
What Prime Minister
Announced In his general policy statement, Michel Barnier called for better mobilization of French citizens’ savings to support industry. He announced the creation of a new savings account dedicated to industry, with the goal of bolstering the country’s industrial ambitions. Since then, the Ministry of Finance has not provided any further details: “The specifics of the industry savings account will be clarified at a later date,” a spokesperson for the Ministry of Finance said on Thursday, October 3.
An idea that has been raised in the past
The idea of an “industry savings account” is not new. In 2012, Jean-Marc Ayrault, then Prime Minister, announced the creation of an “industry savings account” in his general policy address. He argued that this account would help channel available savings toward productive purposes. Even earlier, during the “Estates General of Industry” convened in 2010 under Nicolas Sarkozy, a similar proposal had emerged, but none of these initiatives ever came to fruition.
What will the industrial savings account look like?
It remains to be seen what form the industrial savings account proposed by Michel Barnier will take and how it will differ from existing options. For now, no details have been provided by either the Prime Minister’s Office or the Ministry of Finance.
What We Already Know About the Industry Savings Account
• Target launch date: 2025.
• Allocation of savings: Toward “industrial growth” and French SMEs.
• Interest rate: Unknown.
• Tax treatment: Not specified at this time.
Existing regulated savings options
The French are turning en masse to the Livret A for regulated savings. A proposed law aimed to direct a portion of the funds collected toward the defense industry. Approved by the Senate in March, it had not been considered by the National Assembly before its dissolution.
The Livret de Développement Durable et Solidaire (LDDS) also allows savers to “make a donation to a social and solidarity economy enterprise.” Banks must use the funds collected to provide loans for improving the energy efficiency of housing, at attractive interest rates.
Also worth noting is the very recent Climate Future Savings Plan (PEAC), a medium-term savings product for those under 21. Its purpose is somewhat similar to that of the “livret industrie,” as Bruno Le Maire stated during its presentation in 2023 that “industry requires a great deal of capital. There is a lot of public investment, but private savings must also be mobilized.”
An Industry Savings Account Starting in 2025?
The Minister of the Economy and Finance, Antoine Armand, was briefly interviewed on RTL on Wednesday, October 2, regarding the industry savings account mentioned by Michel Barnier. The goal is to launch it “in the coming weeks,” and it could be ready by early 2025, according to Antoine Armand. However, the minister did not provide any details regarding its future interest rate, how it will operate, or the eligibility requirements. He did, however, reaffirm the goal of channeling French people’s savings toward the country’s industrial sector: “We all want there to be more factories in France.”
