Of the 35,000 billion euros in savings in Europe, a third finance in the United States: this is what the Minister of the Economy, Eric Lombard, has stood out during an interview in Télematin, on Thursday, June 5.
An undoubtedly exaggerated proportion according to experts. For Philippe Crevel, the director of Cercle de L’Epargne, the proportion of European savings invested abroad would prefer to represent 20%. And the remaining 80% is often placed in low and field accounts.
This massive influx to the US economy is explained because returns are much more attractive to American products: secret accounts, life insurance units or ETF, for example.
European savers naturally seek the best yields. Therefore, investors will look for it on the other side of the Atlantic. The difference in the valuation between US and European actions has continued to expand, and in particular from COVVID. In the United States, equity prices were at the end of 2024 valued 25 times the profits of S&P 500 companies against 14 times for those of the MSCI Europe Index.
In addition, about 50% of EU home savings are placed in bank deposits or liquid and guaranteed products, to the detriment of capital investments, especially in quoted shares, which are more risky but above all necessary to finance European companies.
How to make these hundreds of billions of euros return to water the economy of the old continent?
A sufficient European label?
Like “Made in France” in the industry, the Executive has a form of “economic patriotism” to encourage investments. Bercy announced this Thursday “the European long -term savings label on Thursday.” It is not a new financial product, but a point of reference for savers that significantly flow their savings for the financing of European companies.
Market actors will be able to place this label if at least 70% of the assets are invested in the European economic area (EEE) and if the products are mainly invested in capital, to contribute to capital financing for European companies. The products labeled must include an incentive for long -term detention, with, for example, a minimum 5 -year investment duration.
Tag control by Member States
The competent national authorities or agencies of each of the Member States will verify compliance with the label criteria. Any abusive or not as it can lead to the withdrawal of the right to use the label.
This project does not constitute European regulations, but an intergovernmental initiative coordinated, open to all member states that wish to participate.
“With regard to the savings of the French, one can only be in a measure of incentives, he remembers a Bercy advisor. We have many challenges for new companies and SMEs that deserve funds to climb.”
Source: BFM TV
