Livret A doubling may be put off
It is rumoured President Hollande may be about to u-turn on promises to double the ceiling of the Livret A this year
A PROMISED doubling of the Livret A ceiling may be put off for several years.
President Hollande said the ceiling for the popular tax-free savings account would be doubled next month. Now, according to “inside sources” quoted by national Sunday newspaper Le Journal du Dimanche this could be put off to the rentrée - and, more importantly, it could be done in two stages with a long delay in-between.
The paper said the president is considering an initial rise from the current €15,300 to about €20,000, after which there would be a reflection period of two or three years, so as to judge the effects. Only then would the ceiling rise to €30,600.
The sources said the president has been listening to bankers worried that too many people will take savings out of other kinds of (taxed) accounts. Banks claim that as much as €40billion could be moved if the doubling goes ahead and that the wealthy will benefit most (only 10% of Livret A owners ever reach the ceiling).
The head of the Banque Populaire Caisse d’Epargne, François Pérol, recently said it would be too costly for the state.
The Livret A is the most popular kind of savings account in France and gives interest of 2.25%.
Only a few weeks ago Housing Minister Cécile Duflot confirmed plans for doubling (though without mentioning the timeframe) – as funds invested in Livret As are partly used to finance social housing schemes.
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