In these times of Himalayan investment needs, to respond to energy, societal, economic and budgetary transitions, the temptation of opinion fueled by political debates remains to seek answers (culprits?) from the so-called “haves” of Society and “big business”. Nothing very new in itself… except the inclusion of Savings in this never-ending quest for new scapegoats.
Thus, the age-old debate that divides many economists is once again relevant, on the question of whether Savings (qualified nationally as excessive), but immutable as a great popular value of republican virtue, could become a brake on investment, growth, employment and ultimately on demand itself…
Also, this new publication of the REF, based on a plethora of brilliant authors, comes at the right time and in three well-documented chapters, bringing to the reflection factual elements, context and a long-term strategic vision.
The first part of the book focuses on providing an overview of the evolution of savings in France compared to Europe, while the second chapter deals with the heterogeneity of saving behavior in several dimensions (in relation to the holding of risky assets, according to household characteristics, life cycle, and the role of certain public policies. Finally, the third part sheds light on the great question of the mobilization of private savings, in the service of the French and European economy.
It should be noted that in France, if individuals save a lot (15% on average) and above the main OECD countries, they do so… rather badly… by favoring liquid and less risky assets. The resulting low shareholding and, moreover, the increase in the stock of foreign shares have adverse consequences in terms of sovereignty and competitiveness for our country. The need for a regulation that favors less “safe and liquid” assets is called for by all financial players, insurers, banks and asset managers. The authors argue for an acceleration of the implementation of a true “Union for Savings and Investment”, by identifying four priority areas: redesigning market infrastructures to reduce costs, unifying the supervision of capital markets for better risk sharing, reviving securitization and financing the green transition, and promoting the European venture capital industry to finance innovative companies.
As this remarkable publication shows, the new path that seems to be opening up for Savings is covered with beautiful promises… no doubt still accompanied by this popular saying: “He who does not save a penny will never have two.”
*DGA at the Banque de France ** Director of European Affairs at the FEI
Jean-Louis CHAMBON
