The Livret A rate was maintained at 3% by the government on August 1, against a new rate of 4.1% according to the calculation formula. A decision contested by the professor of public law at the Panthéon-Sorbonne University Paul Cassia who filed an appeal before the Council of State. An action that has little chance of succeeding according to the expert Philippe Crevel.
The passbook A rate was maintained at 3% on August 1 by the government. However, according to the calculation formula based in part on the evolution of the average inflation excluding tobacco over the last six months, the remuneration of the Livret A should have increased to 4.1%. But the Minister of the Economy Bruno Le Maire announced on July 13 that not only would the Livret A rate be unchanged, but that it would also remain fixed at this level for the next 18 months, i.e. until February 2025.
“A promise in favor of the saver”
This is “a promise in favor of savers” argued the Governor of the Banque de France, François Villeroy de Galhau. According to him, the blocking of the Livret A rate could ultimately be good news for households because according to Banque de France forecasts, inflation will drop by 5% in 2023 to 2.5% over the year 2024, then “towards 2% by 2025”, which mechanically would have lowered the rate of the Livret A which is revised every 6 months in normal times. By blocking the rate of the Livret A, it is, according to the Banque de France, to avoid “going through a period of volatile returns” of the Livret A. Stability would therefore be better for savers.
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In addition, a rise in the Livret A rate on August 1 would have been likely to slow down economic activity. “The rate of the livret A is a central element of the financing of the French economy, particularly that of social housing and urban policy, but it also plays a role in the cost price of real estate loans and those intended for SMEs. . A rate that is too high, when regulated savings have no equivalent among our European neighbours, would be detrimental to our economic activity and to growth”, underlined the Banque de France.
It is in this context that the Banque de France and Bruno Le Maire considered that “exceptional circumstances” justified an exemption with the maintenance of 3% of the remuneration of the Livret A.
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Arguments that did not convince everyone. The professor of public law at the University Panthéon-Sorbonne Paul Cassia, member of the Board of Directors of Anticor, filed an appeal before the Council of State where he is… master of requests. On Twitter and on TF1he explains that he has requested that a check be made on the “exceptional circumstances” invoked and whether the rate of the Livret A can be frozen for 18 months.
“An exceptional circumstance must be interpreted strictly. Can it be exceptional if it repeats itself? he asks himself. Indeed, the authorities have already invoked exceptional reasons in January to raise the Livret A rate to 3% instead of the 3.3% expected by the calculation formula.
As for the freezing of the rate for 18 months, it would not respect the regulations which provide for a review of the remuneration every six months according to a decree of January 27, 2021.
“I will be surprised if the Council of State follows”
“Either we respect the decree, or we modify it, but we don’t do what we want”, replies Paul Cassia. On the form, Philippe Crevel, economist and fine specialist of the Livret A, understands the recourse of the lawyer. But on the merits he does not believe in a questioning of the announcements of the government and the Banque de France. “It’s in tune with the times to multiply legal remedies,” he explains to MoneyVox. I will be surprised if the Council of State follows. The institution has one year to decide.
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