Too cautious, French savers? With the drop in returns on risk-free products this year – like Livret A – we could expect them to take more risk with their savings, in the hope of earning more. But that was not the case. Because according to the BPCE L’observatoire barometer, published Tuesday October 14, political instability in France has dissuaded households from investing in the stock market.
Several data illustrate this. First, the outstanding stock savings plans (PEA), the most tax-effective product for investing in the stock market in Europe. According to the barometer, the volumes of money placed on this product “stand at 119 billion euros at the end of June 2025, a level almost unchanged compared to the previous peak of 2006”while over this period, the index which brings together the 120 largest French companies (the SBF 120) increased by 45%.
Volumes invested in PEA and units of account are plateauing
Same observation with a more general public investment such as life insurance, which also allows you to invest in the financial markets. According to the barometer, a good part of the French people’s secure savings – held in Livrets – have indeed been transferred to life insurance, but in a greater proportion to its risk-free guaranteed part, the euro fund. Volumes oriented towards units of account (UC), which notably allow investment in shares, are in decline: the share of UC reached a historic level at 40% of payments in 2022-2023, then was “reduced to 38% in 2024 and has remained at this level since then. It could be slightly downward towards the end of this year. points out the study.
But is this necessarily a bad strategy? Since the announcement of the dissolution of the National Assembly, BPCE The observatory notes that the CAC40 has fallen by 4% over 15 months. In other words, a saver who had bet on it over this period would have lost money. But since the start of this year, the flagship index of the Paris Stock Exchange has recovered well, and to date has shown an increase of 10%.
More than 30% increase in the Spanish “CAC” this year
Above all, focusing on French political instability can cause us to miss stock market opportunities among our neighbors: the German Dax has increased by 23% since the start of the year, the Spanish Ibex by 33%, and the Italian Mib by 25%. So many indices to which you can gain exposure via ETFs (“trackers”) or by betting on the major stocks that make them up, with a PEA (dedicated to European stocks), life insurance, or even an ordinary securities account.
And to continue investing in France, it is possible to overcome political and budgetary criticism by reorienting towards more “defensive” sectors, i.e. “which tend to hold up better, relatively speaking, when the rest of the stock market is struggling”explains Alexandre Baradez, analyst at IG France. Among these sectors, we think of community services (Engie, Veolia), telecoms (Orange, Eutelsat) and even health (Boiron, Sanofi). So many companies “whose policy marginally affects the activity”adds the analyst.
