While the Government is preparing various measures to make savings, should we fear that the State will draw on the savings of the French to reduce the country’s debt?
Like many people, you probably put money aside for your projects, your vacations, your investments or simply to deal with life’s unexpected events. And like the majority of citizens, a more or less significant part of your savings is found in different savings products. A question then arises: in the event of a major economic or financial crisis, could the French State draw on your precious funds to bail out?
The subject is complex, in addition to being politically sensitive. In absolute terms, the right to property is particularly protected in France, and guaranteed both by the Constitution and by the Civil Code. Certainly, the State can carry out expropriation under certain conditions, but it must then justify a collective interest greater than the individual interest, and compensate the injured owner. And in our country, the expropriation judge scrupulously watches over the interests of individuals.
Apart from the case of the expropriation of material property for reasons of public utility, the State cannot theoretically use it directly from citizens’ bank accounts. Well, not quite. Contrary to what you can read here and there on the internet, the administration can make an automatic deduction from your account, via the mechanism of administrative seizure of third party holder (SATD), if you have not paid your taxes or a fine for example.
What about in the case of a major economic crisis? The answer varies depending on the nature and origin of the disaster. In the case of a bank failure, the bailout of the establishment in difficulty takes place in several stages. Initially, the bank can “request” its shareholders and creditors to absorb its debts up to 8% of its liabilities. And if this injection of capital is not enough, it can then put its customers to work.
In this case, part of your savings is then protected by the Deposit Guarantee and Resolution Fund (FGDR). Concretely, in the event of the bankruptcy of your bank and the unavailability of your assets, the FGDR guarantees you compensation of up to €100,000 for the total of your current accounts, savings accounts and plans, and €100,000 of more for your centralized savings accounts (Livret A, LDDS, LEP), i.e. €200,000 maximum.
In the event of a financial crisis for the State this time, things are more vague. A priori, the Government could not decide unilaterally to dip into the savings of the French to cover its deficit, but it could use indirect levers to do so. For example by lowering the interest rates of regulated savings plans, such as the Livret A, the LDDS or the LEP. Or quite simply by sharply increasing taxes.
However, as crisis situations are by nature exceptional, the State could of course employ… exceptional measures. If the prospect of a seizure on your bank accounts worries you, the best solution available to you is the diversification of your assets. Rather than keeping your wealth in the form of monetary units in the bank, you can invest in safe havens, such as real estate or precious metals like gold.