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French Saving Hits Four-Decade High as Bayrou’s €44 Billion Budget Clash Looms

Fresh INSEE figures intensify a fight over cutting deficits or steering private wealth toward investment.

Overview

  • INSEE reports a Q2 household saving rate of 18.9% with 43% of households putting money aside, and total financial assets above €6,300 billion.
  • Savings growth is concentrated among wealthier and older households, sharpening distributional questions over who benefits and who can contribute.
  • Prime Minister François Bayrou readies a 2026 plan to find about €44 billion in savings for parliamentary scrutiny on September 8, drawing accusations of austerity from left parties and unions.
  • L’Express notes the Bayrou plan would still see public spending rise in volume, while a Socialist counter‑budget proposes €26.9 billion in new taxes and defers the 3% deficit goal to 2032, drawing expert criticism.
  • Surveys show many French perceive declining living standards as constrained expenses reached 30.4% of household budgets in 2023, complicating calls to boost consumption.