EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 6 November  2017  
on a temporary freeze of  the remuneration rate in respect of  the French l ivret A  and certain other 
French  regulated savings accounts  
(CON/2017/45)  
 
Introduction and legal basis  
On 13 October 2017 the European Central Bank (ECB) received a request from the French Ministry of 
Economy and Finance for an opinion on a draft regulatory provision  (hereinafter the ‘draft amendment’ ) 
freezing  the remuneration rate of the livret A , the comptes spéciaux sur livret du cr édit mutuel, the livret 
d’épargne populaire, the livret d’épargne- entreprise, the compte d’épargne- logement (together the 
‘related savings accounts’) . Each of them is a type of  French regulated savings  account , which has a 
remuneration rate linked t o that of the livret A . 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union  and the third and sixth indents  of Article  2(1) of Council 
Decision  98/415/EC1, as the draft am endment  relates  to: (a) the basic task of the European System of 
Central Banks (ESCB) of implementing the monetary policy of the Union pursuant to the first indent of 
Article 127(2) of the Treaty ; (b) the Banque de France;  and (c) the rules applicable to f inancial institutions 
insofar as they materially influence the stability of financial institutions and markets . In accordance with 
the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing 
Council has adopted this opinion.  
 
1. Purpose of the draft amendment 
1.1 The purpose of the draft amendment is to set, from 1 February 2018 to 31 January 2020,  a fixed 
remuneration rate for the livret A  and related savings accounts . In particular, these rates would be 
fixed  at 0.75 % for the livret A , at 0.75  % for the comptes spéciaux sur livret du credit mutuel , at 
1.25 % for the livret d’épargne populaire, and at 0.50 % for each of the livret d’épargne entreprise  
and the compte épargne logement  respectively . As a consequence,  the remuneration formula on 
which  the ECB rendered Opinion CON/2016/512 would not be applied during this period. Similarly , 
the Banque de France and its Governor ’s role  in making the calculations, proposing ad hoc 
revisions and requesting derogations from appl ying the rates  would be temporarily suspended as 
regards these accounts.  
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189,  3.7.1998, p. 42).  
2   All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  
ECB -PUBLI C 
2 1.2 As noted in the consultation request, the French authorities intend to implement the above-
mentioned temporary freeze of the applicable remuneration rates in order to reduce the diver gence  
between money market rates and the remuneration rate of the livret A  and related savings 
accounts  (which the current inflation floor in the remuneration formula does not allow ). Ultimately 
this would ensur e a better monetary policy transmission.  Such temporary freeze would be followed 
by a further amendment of the remuneration formula of the livret A  and of the related savings 
accounts in order to better align its remuneration rate with prevailing money market rates.  
 
2. General observations  
2.1 The ECB understands  that the remuneration of the above- mentioned regulated savings accounts 
would be fixed at the respective currently applicable rates.  
2.2 The ECB reiterates that it is generally not in favour of regulating savings remuneration, as this 
derogates from the principle of an open market economy with free competition, presents 
challenges for the efficient transmission of monetary policy and, to a certain extent, for financial 
stability3. The discrepancy between money market rates and the regulated rates may ge nerate 
significant costs for banks, thus potentially impeding their financial intermediation role and the 
stability of the banking system.   
2.3 The draft amendment maintains a regulated fixed level of remuneration for a number of French 
savings accounts. The f ixed nature of such remuneration for a period of two years cannot ensure a 
remuneration of these savings accounts in line with money market interest rates.  The ECB 
nevertheless understands that the application of the current formula – which  the draft amendment  
is suspending – would lead to even greater discrepancies with money market rates than those 
resulting from fixing current rates. The ECB therefore encourages the French authorities to revise 
the remuneration formula,  which should lead to a better alig nment with money market rates , and on 
which it expects to be consulted in due course.  
2.4 Finally, in line with its previous opinion on the subject matter4, the ECB also welcomes the fact that 
the draft amendment temporarily suspends the tasks that ha ve been historically exercised by the 
Banque de France and its Governor regarding the livret A  and related savings accounts.  
 
This opinion will be published on the ECB’s website following its adoption and in any case no later than  
six months following its adoption.  
 
Done at Frankfurt am Main,  6 November 2017.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
3  See paragraph 2.2 of Opinion CON/2016/51.  
4  See paragraph 2.5 of Opinion CON/2016/51.