Savings: helping the State to finance the defense, how much does it report?

The State wants to mobilize the savings of the French to finance the defense industry. Booklet A, Life insurance, PER … What investments could be affected, and above all, what remuneration to hope?

• 
  

  To safeguard
  
  
  

  Saved
  

Will the general mobilization of French savings ring? Work is in any case good “in progressTo enclose part of their economies to the national defense industry, confirms the Ministry of Economy and Finance at Capital. But what form could this incitement take, and above all, what counterpart can savers hope for their woolen stockings? For the time being, three scenarios are possible, pending the meeting which will be held on March 20 between the Minister of the Economy, Eric Lombard, and the banks, insurers and investment funds.

Redirection of booklet A or creation of a dedicated savings booklet

In recent news, this is the hypothesis which most often returned to the front of the scene: the creation of a new regulated savings booklet – like Booklet A, LDDS or LEP – dedicated to the financing of the French military industry. A new solution that would have two advantages: readability and accessibility. “All French people could therefore voluntarily participate in the financing of our defense industry, with a type of savings product they already know and which they need”explains Rachid Temal, senator of Val-d’Oise, who had tabled in early 2023 a bill aimed at the creation of a “sovereignty defense savings book” (LEDS).

It is true that the love of French for secure savings cannot be denied, with a total 57 million booklets A open and an outstanding 935.5 billion euros At the end of 2023, all regulated savings products combined. Hence the idea, to avoid the deployment of yet another booklet, to orient part of the funds already deposited on booklets A towards defense companies. 40% of the outstanding this booklet is indeed already managed by banks, to finance loans of VSEs, SMEs and ETIs, which is mainly composed of our industrial and technological defense base (BitD), according to the Ministry of Defense, alongside nine large groups (Thales, Dassault Aviation, Airbus, etc.). If the arrow of part of the capital A to the defense capital, which seems to be the simplest solution to be implemented, is ultimately retained, the remuneration of the saver will not exceed that of booklet A (2.4% since February 1, 2025), unless the new booklet benefits from a “boost”.

The hypothesis of a new major loan

Asked about Europe 1 and CNews Friday, March 7, the Prime Minister, François Bayrou, did not exclude the idea of ​​launching a large national loan in order to increase military spending. Here too, savers would be used: the idea, on the model of an obligation, would be to propose to them to lend the State, in return for an interest paid regularly (the coupon) and the recovery of the capital loaned to maturity (undoubtedly several years). In the history of the fifth republic, various major loans have already emerged (Balladur, Barre, Mauroy loans, etc.) with yields between 6 and 10%.

And this is one of the concerns of a future potential “borrowing Bayrou”, because to be acclaimed by the French, he also will have to offer an attractive return … and therefore a cost for public finances – which will bear the burden of the interests paid to savers. Indeed, at present, it is already possible, for an identical level of risk, to take out French state obligations at a rate of 3.5% over 10 years. It will therefore be necessary to offer at least as well.

Enclose part of life insurance or per

The last option, which would have the ascendant to the others, according to the confidences of the services of Bercy to Capitalwould be to enclose part of the savings paid by the French on their life insurance contracts, their employee savings plans (PEE) or their retirement savings plan (PER). Savers could decide to invest – or be encouraged to do so -, via account units (UC) of these various contracts, in funds that would finance companies in the defense sector. A much more risky placement, but for yields that could climb up to 8 or 10%, even if a recent study by the Financial Markets Authority (AMF), points to median performance included between -2.4% and 5% For these funds for individuals who invest in unlisted companies on the stock market (Private Equity).

If the track is privileged, it is because it would allow savers to enter the long -term to the capital of companies in the sector. This represents a significant advantage for Pierre-Elie Frossard, founder of Souvtech Invest, a crowdfunding platform offering to invest in French defense players: “Companies in this sector need more equity provided by shareholders than debt, which they will have to reimburse. To respond to the increase in public procurement, they will indeed need capital to invest massively, or conduct merger-acquisition operations to grow. ”