France to raise Livret A savings ceiling to fund climate adaptation

The ceiling will be raised to between €25,000 and €30,000, up from the current €22,950, according to Prime Minister Sébastien Lecornu.

“We will increase, raise the ceiling of the Livret A… in February, along with the update of the rate, which will also increase,” the Prime Minister stated during a session of questions to the government in the National Assembly.

Matignon described the Livret A as “the most well-known savings product for the French, popular and available at any time,” and a tool to mobilize savings for national priorities.

The announcement comes as the government seeks budgetary flexibility with strained public finances, amidst rising borrowing costs and stalled debate around the 2027 budget.

Matignon intends to utilize Livret A funds to finance public infrastructure, including electricity production and networks, water network renovations, and other key areas requiring adaptation to climate change.

The Livret A, along with the Livret de développement durable et solidaire (LDDS), are regulated savings products currently offering a return of 1.7%.

As of September, French citizens held a combined €606.7 billion in these two savings products, which are used to finance social housing and urban policies through credits from the Caisse des dépôts.

The increase in the ceiling also aims to provide more resources for the renovation of schools and colleges, a key demand from student protests, according to Sébastien Lecornu.

The Prime Minister’s remarks followed a question from Christophe Naegelen, leader of the Liot (Libertés, indépendants, outre-mer et territoires) parliamentary group, who had proposed a national loan with a 3.5% interest rate.

Finance Minister Roland Lescure will specify the new ceiling in the coming weeks, following final consultations with banks and the Caisse des dépôts.

The Caisse des dépôts (CDC) welcomed the move, stating it would strengthen the ability to serve territories facing housing crises and climate change adaptation challenges.

The French Banking Federation expressed reservations, arguing that raising the Livret A ceiling would “immobilize more savings in liquid and guaranteed placements rather than in long-term investments that businesses need.”

Nicolas Namias, president of BPCE, a major banking group, added, “There’s no magic money. So, the increase in the Livret A ceiling recycles deposits that are elsewhere.”

It remains to be seen whether this measure will boost the appeal of the Livret A, which has seen declining interest since last year due to falling interest rates that reached a low of 1.5% in early 2026. In September, withdrawals exceeded deposits by €1.52 billion.

The government also plans to finance up to 60% of the construction of six new EPR2 nuclear reactors through a loan utilizing regulated savings, including Livret A funds, up to a limit of €60 billion.

On Monday, a coalition of left-wing politicians, associations, and unions called for the withdrawal of this plan, fearing it could jeopardize social housing funding.