This is the question that should now be asked of the governor of the Bank of France.
Do you want to reintroduce exchange controls?
Do you want to tax or force the French to invest only in investments authorized by the government?
“Present in Davos for the annual meeting of the World Economic Forum, the Governor of the Bank of France François Villeroy de Galhau welcomed at the microphone of BFM Business the speech given this Tuesday by the President of the European Commission Ursula von der Leyen, the following day of Donald Trump's inauguration.
“She said that we Europeans will stick to our values, to the rules of law. We simply have to be more offensive in the way we defend them. And then she drew up a program for change in Europe, for accelerating growth and innovation in Europe”.
He recalled that the “fate” of Europeans “does not depend only on the Americans and the Chinese”. “It is time to activate the levers that we have in Europe” to invest, he said, referring to “a resource that we never talk about: private savings”. Because “private savings are abundant” on the Old Continent, insisted the governor, recalling that each year, “there are 300 billion euros of savings of Europeans who will invest outside Europe, and “first in the United States”.
“Let’s get this 300 billion back”
Thus, “we do not lack capital, but we lack capital markets and generally financial intermediation which is much stronger in the United States”, further underlined François Villeroy de Galhau. “Let's recover these 300 billion to meet the investment needs that we have in Europe” particularly in “the climate transition and the digital transition. (…) Let’s use our strengths,” he said.
This is the whole objective of the Union for Savings and Investment, a project defended by the governors of the EU central banks and which aims to create a true single market for financing. With this union, “the best of what the Americans achieve, that is to say finance in the service of the economy, we can do in Europe”.
So how can we recover this money that is going to invest in the United States?
On a regular basis this means offering more profitable investments in France and Europe than in the United States. Hard to believe.
-So the old-fashioned and French way… by regulating, preventing and sanctioning. They can therefore opt for a ban on investing in the USA, for exchange controls to limit our possibilities of investing in the United States, or even for compulsory investments.
In short, after the pandemic confinements, the climate confinements already mentioned, here is the confinement of your savings in Europe. Forbidden to move or go out.
Brilliant policy, isn't it?
Charles SANNAT
“Insolentiae” means “impertinence” in Latin
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