France: what to do with the savings accumulated during confinement?

Text by: RFI Follow

The eight weeks of confinement prevented the French from consuming. As a result, households have saved tens of billions of euros. Now that deconfinement has started, the question is whether there will be a catch-up in consumption, which would boost economic activity.

Publicity

According to the French Observatory of Economic Conditions, the French saved 55 billion euros during confinement, or 230 euros per household per week. This figure could even double by September if consumption remains sluggish , estimates Bercy.

One can wonder all the same if the French are going to overconsume in order to revive economic activity. Nothing is less certain, because the current economic crisis and the uncertainty to come could reinforce precautionary savings. Containment could also change consumption habits, the French may be less inclined to consume. This savings will therefore not be spent quickly.

A “  C booklet  ” like coronavirus

It is also the subject of a debate on the part of specialists, who do not lack ideas on how to reinject these sums in the economy: taxation, tax incentive or creation of specific savings. The chairman of the Assembly's finance committee, Eric Woerth, suggested, for example, creating a "  passbook C  " like coronavirus, "  little brother of the passbook A  ", savings that would finance an investment plan for businesses.

► Read also: France: deconfinement, an issue in the campaign for the Paris city hall

Newsletter Receive all international news directly in your mailbox

Follow all international news by downloading the RFI application

• France
• Coronavirus
• Confinement
• Economic crisis

On the same subject

Coronavirus: Germany in turn enters recession

Albert Zeufack (World Bank): "A food crisis could add to the recession in Africa"

Africa economy

Sudan: coronavirus crisis adds to severe economic crisis