How to ensure that the savings accumulated by the French during the crisis fuel the recovery?

As we know, the French have accumulated a lot of savings during the Covid crisis because of the decrease in outings, leisure activities and travel in particular.

Bercy now wants to encourage them to spend ...

"Yes, it is estimated that this additional savings represents a good 100 billion euros, or the equivalent of the recovery plan. And that we will even reach 200 billion by the end of the year. Obviously, that gives ideas to each other, especially bad ideas, because after all, if you put money aside, it's up to you, no one can force you to spend it.

On the left, more and more voices are calling, guess what, that we tax this savings.

In general, we don't say it like that: we talk about 'exceptional contribution'.

It's less violent than a 'tax hike' but it's the same thing.

Argument: this savings was mainly accumulated by the better-off.

It's quite extraordinary: supporters of this tax are discovering that it is easier to put money aside when you make a good living than when you are fair ...

But this idea of ​​a tax is rejected by the government ...

Yes, Bruno Le Maire was very clear, no way.

First, because it is a political commitment.

And then the economists themselves are very reserved about the effect that a one-off tax could have: Couldn't households be encouraged to save even more in anticipation of future tax increases?

This would be the opposite of the desired effect.

Finally, we are counting on consumption to drive the recovery in the coming months: taxing consumers would therefore risk limiting the recovery momentum we are hoping for.

How do we ensure that accumulated savings fuel the recovery?

One of the avenues that Bercy is considering would be to facilitate loans or donations between generations: today, direct donations, that is to say to a child, are capped at 100,000 euros.

Beyond that, it is taxed.

We could therefore raise this ceiling so that the money circulates between generations.

Another avenue, proposed by Eric Woerth, the president of the Finance Committee in the Assembly: the creation of a Covid booklet, a savings book whose funds would be guaranteed by the State and invested in small companies.

You see, there are leads.

But we know that the best way for the French to consume is to speed up vaccination and to reopen the economy as quickly as possible.

In short, we give a perspective, as Boris Johnson has just done in the United Kingdom.

Because any delay comes at a high price. "