Livret A

The Livret A is a historic financial product offered by French banks. Established in 1818 by King Louis XVIII to pay back the debts incurred during the Napoleonic Wars, part of the funds are now transferred to and re-invested by the Caisse des dépôts et consignations, owned by the French state, to build HLM, or social housing, and pay back the Eurozone debt. The remaining funds are used by banks to give loans to French small and medium-sized enterprises. The product acts as a savings account for French citizens and residents, and the annual returns are not taxed. In 2012, it was owned by 60 million individuals, for a total amount of 220,8 billion Euros.

The Livret A was established in 1818 by King Louis XVIII to pay back the debts incurred during the Napoleonic Wars. The funds are held and re-invested through the Caisse des dépôts et consignations, founded in 1816.

In the 19th century, the funds were used to build railroad tracks and canals throughout France. Between World War I and World War II, it was used to install electricity in rural France.

Since 1945, it has mostly been used to build social housing.

Part of the funds are invested through the Caisse des dépôts et consignations, which is fully owned by the French state. In 2011, a decree issued by the Prime Minister suggested that French banks had to transfer 60% of all funds from the Livrets A to the Caisse des dépôts. Prior to the decree, La Banque Postale was the only bank to transfer 100% of all funds from the Livret A to the Caisse des dépôts, while the Groupe Caisse d'Épargne transferred 80%. Commercial banks like the Société Générale or the Crédit Agricole only transferred between 20% and 30%. All French banks have by 2022 to transfer 60% to the Caisse des dépôts.

...
Wikipedia