Overview

• The Finance Ministry confirmed that effective August 1 the Livret A and LDDS rates will be set at 1.7%, while the LEP rate will drop to 2.7%.
• Rates are adjusted every January and July using a formula based on six-month average inflation (excluding tobacco) and the Euribor, reflecting recent declines in both indicators.
• This August revision marks the second cut this year and the largest semiannual decline since 2009, coming after a February reduction from 3% to 2.4%.
• Savers have reacted by stashing less on these booklets, with combined balances growing just 0.4% year-to-date, six times slower than last year as households seek better returns.
• Proceeds from over €600 billion in regulated savings fund social housing, local governments and energy transition projects, raising questions about future public investment costs.