2023-07-14 05:33:10
Barthélémy Philippe, edited by Yanis Darras / Photo credit: DENIS CHARLET / AFP 7:33 a.m., July 14, 2023
Will the Livret A be used to finance the French army? The preferred placement of the French will give a boost to the defense sector next year, thanks to the vote on the military programming law for the period 2024-2030. But the Livret will continue to finance, as a priority, the construction of social housing.
Will the Livret A finance the tanks and ammunition of the French Army? This Thursday, Parliament definitively voted the military programming law for the period 2024-2030, while we learned of the freezing of the rate at 3% of the preferred booklet of the French on August 1.
“Giving a boost”
This law provides for the mobilization of French savings to finance SMEs in the defense sector. From now on, with the Livret A and the Livret de développement durable (LDD), a fraction of the savings will go to defense SMEs. “The goal is to give an impetus to the banking sector to encourage them to take an interest in financing defense companies. This is a sector that sometimes gets bad press, it’s easier to finance solar panels than tanks for example. However, both are conditions for the sustainability of our society”, explains Thomas Gassilloud, chairman of the defense commission at the National Assembly.
The priority remains social housing
If this is a small revolution for the Livret, however, this does not change the fact that 60% of the outstanding amount is reserved for the construction of social housing. It is the Caisse des dépôts which takes care of this by lending money to social housing organisations. The banks also direct part of the savings towards projects linked to the energy transition and the climate.
But there is still room for defense SMEs. Because the outstanding amount of the booklet A reached heights of 400 billion euros. Parliament has provided for a review clause at the end of 2026. And if the regulated booklets are not enough, the creation of a special booklet for defense will be considered.
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