100, 120, 200 billion €… the figures vary according to the sources but the phenomenon is beyond doubt: for a year, the French have saved massively! Forced savings insofar as a large part of so-called “non-essential” businesses were closed, or precautionary savings in order to anticipate the economic problems linked to the health crisis.
While the vaccination campaign – even if some consider it too slow – suggests a return to a “quasi-normal” life in the first days of summer, the reflection on the conditions of the economic rebound is at the center of the debates. Among all the scenarios mentioned, the chartered accountants of France consider, beyond reductive dogmas and political postures, thata taxation of accumulated savings would be a counterproductive measure. It’s a safe bet that the French concerned would be tempted to save even more to meet the announced taxes.
On the other hand, figures and consulting professionals plead for a consumption shock that would make possible a set of devices encouraging the French to mobilize the sums hoarded since the start of the pandemic. In a white paper submitted to the Minister of the Economy and Finance, the National Council of the Order of Chartered Accountants proposed a simple, pragmatic, achievable and time-limited program for a period from July 1, 2021 to June 30 2022:
Authorize the early release of employee savings without conditions of use
Allow donation without rights and without conditions of use up to 50,000 euros between ascendants and descendants and collaterals without children until the end of 2021 (the law authorizes, every fifteen years, the donation of 100,000 euros to each of his children and 30,000 euros to each of the grandchildren) Allow the withdrawal within the limit of 50,000 euros from life insurance contracts with a tax advantageous. Grant a tax reduction equal to 100% of donations made by individuals for the benefit of NGOs and other associations recognized as being of public utility.
The implementation of such a device could inject into the economy, over a short period, part of “COVID savings” and create the conditions for a consumption shock. To avoid the risk of consumption fueling France’s foreign trade deficit, a communication campaign should call on the French to a form of economic patriotism.
Consuming locally is the responsibility of each of us today. Enabling the economy in general and the fabric of very small and medium-sized enterprises and SMEs which mainly make it up to be able to rely on dynamic demand – the fuel essential to their rebound – must be among the national priorities.
At the heart of the real economy, alongside the leaders in this unprecedented period, the Chartered Accountants of France will be mobilized to make their contribution to restarting the country’s economy.