Behind the figure: during the crisis, the French saved 142 billion

Behind the figure: during the crisis, the French saved 142 billion

Since the start of the Covid-19 crisis, the French have saved more than 142 billion euros more. This savings would boost growth if it were spent. We have started to do this, and some are proposing to lower VAT.

Behind the figure: during the crisis, the French saved 142 billion

Since March 2020, the French have saved 142 billion euros. But behind this record and dizzying figure, are they hiding more French cicadas or ants? “I’m more of an ant, because I don’t know what will await us next, I’m so afraid of last year…”, said a passerby. “I am completely cicada, I love to spend, I love to go out”, said another. More spending, and therefore more growth: more than 5%, according to the government.

Lower VAT?

“Household income is preserved, plus savings set aside allow households to resume consuming quite dynamically, and this will be the central core of the recovery”, analysis Mathieu Plane, economist. And to encourage consumers to consume faster, right-wing MPs are proposing to lower VAT to 5.5%, thus lowering prices in the most affected sectors, such as hotels and restaurants. An idea shared by some on the left, but rejected by the government.

Among our sources

Mathieu Plane, economist at OFCE

https://www.ofce.fr/pages-chercheurs/page.php?id=30