Is the project dead?

Is the project dead?

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Livret Epargne Industrie aims to mobilize household savings to support national industrial production, in a context of worrying deindustrialization. But barely launched, this project faltered under the weight of political, economic and structural uncertainty.

Billions of euros in savings dedicated to French industry

The idea behind this booklet is clear: direct part of the 5.9 trillion euros in financial savings accumulated by the French to an important sector of the economy. Inspired by the success of Livret A, dedicated to social housing, or the LDDS (Sustainable and Solidarity Development Booklet), which focuses on the ecological transition, this booklet makes it possible to increase industrial investments, a pillar to reduce that now. represents Today only 13% of the French GDP. Despite these ambitions, political instability and disagreements in the management of the system have compromised its implementation.

Since its announcement, the initiative has been met with a mixture of interest and skepticism. On the one hand, it responds to a clear need: the redirection of the dormant savings of French households towards projects that promote growth. On the other hand, the gray areas surrounding its operation, such as the allocation of funds and terms of return, fuel the mistrust of savers. In France, caution regarding new savings products is known, as evidenced by the lukewarm reception given to the Climate Future Savings Plan (PEAC), although launched in the context of the climate emergency.

The Industrie Savings Booklet: a great idea with no shortage of problems

The nature of the savings account, based on liquidity, also contrary to the needs of the industrywhich requires long-term investments. This structural contradiction raises an important question: can such a product serve the purposes for which it was designed? In addition, to be attractive, this booklet must provide a competitive return and useful tax. The idea is to adapt the Industrie Savings Booklet to the characteristics of Livret A, with a fixed interest rate, a payment ceiling and, above all, tax-free interest. But offering such conditions amounts to increasing the budget deficit that is already predicted at more than 6% of GDP in 2024.

However, abandoning this project has many consequences. Without a dedicated financial toolFrench industry may continue to lose ground against its European neighbors, such as Germany, where industry represents almost a quarter of GDP. In addition, household savings will remain concentrated in products that are safe but not very attractive in the productive economy, such as Livret A, the outstanding value of which reached 386 billion euros in October 2024. By abandoning this project, France risks seeing the lack of competition worsen and losing a unique opportunity to change the industrial fabric.

Will the Industrie Savings Booklet be saved by the next government?

But, will this project be doomed? Nothing is too uncertain. It can be reborn if more favorable conditions are met. A better framing of objectives, with the prioritization of strategic sectors such as energy transfer or defense, will give it a second wind. Likewise, a partially exempt tax system, although expensive, would convince savers. Finally, the active mobilization of banks, as intermediaries and product promoters, can make the difference.

This book on saving the industry will be part of the projects of the next government that will replace that of Michel Barnier, who resigned. When it sees the light of day, it can become more than just a financial tool. This will symbolize France’s capacity to change economic policies to meet major challenges. But now, the project seems to be stuck with political constraints and economic challenges. If the decision-makers fail to overcome these obstacles, this booklet in favor of the industry will never leave the stage of intentions, leaving the French industry deprived of an important lever for continuity and innovation this.

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