The Minister of Economy has announced the opening of a new investment fund to finance the defense and invited the French volunteers to place part of their savings on it.
“The European Union must become an adult in defense and for that, we must invest.” The Minister of Economy and Finance, Eric Lombard, continues the government campaign aimed at encouraging the French to invest in businesses and the defense sector. He even announced on TF1this Thursday, March 20, the creation by Bpifrance of a new investment fund that will bring together public money, purely private investments and the financial investments of the French wishing to participate in the effort.
This money will finance the defense sector made up of nine large groups, such as Dassault, Safran or Thales, and 4,000 SMEs. The French who wish can place their money in this investment fund and become “indirectly shareholders of the companies in the defense sector. But it will be necessary to invest at least an” ticket of 500 euros “, as for the maximum amount of the placement, it has not yet been established but the limit should be fixed to” several thousand euros “. This point must be discussed during a meeting between the Minister of Economy, that of the armies and the companies in the sector.
“Companies will need about five billion equity, new capital, money from public and private investors in order to increase production channels and develop,” said Eric Lombard adding that it will be for many “public money from the Bpifrance, the Caisse des Dépôts, the State” but that “we have [aussi] Need private money “.
“These will be good investments”
While only 44% of French people said they were ready to invest in a savings product designed specifically for defense financing, provided for good remuneration and transparency on the use of funds, according to a survey conducted by mutual France with the IFOP survey institute, the Minister to encourage certain French people to turn to this new investment fund. “These will be good investments,” he said on TF1, but what is his profitability compared to booklet A or other similar savings products?
The booklet has the advantage of having a fixed rate and known in advance, established at 2.40% since February 1, 2025, because it “depends on a formula” explains the minister. The remuneration of investments on the new investment fund has nothing to do with it, it is more complex to calculate since it is used to finance businesses. With such investments in the economy, “there is more risks” recognizes the minister who assures, however, that “over the long term it pays better” money spared. Elements of clarification could be provided after the meeting between ministers and defense companies.
Another difference with booklet A or comparable products: the money placed on the new investment fund must be “blocked for at least five years” and will not be placed and then resumed within a few months. This placement is therefore aimed at “those who have a little long -term savings”, specifies Eric Lombard. If the funds are blocked for 5 years, the remuneration can also be longer to come than with a booklet A whose interest falls each year.
If the government encourages the French who can and wish to participate in the financing of the defense, it ensures that banks and insurers, usually reluctant to this idea, have said it ready to take part in this effort. This is the case of six major banks gathered in French banking federation or the federation of French insurers. What to instill momentum and reassure the French?