are euro funds essential for state finances?

The main advantage of funds in euros is to guarantee the capital. Just a few nuances. Credit: DURAND FLORENCE/SIPA

DESCRIPTION – A major creditor of the state, funds in euros are equally useful for savers.

It’s always the same tune. When every government imagines reforming the taxation of life insurance, the insurance companies shout loudly. Without life insurance and funds in euros, companies and above all the French state would have the worst difficulty in financing themselves, they say. It is true that funds in euros attract massive savings from the French, accumulating almost 1,400 billion euros by the end of 2021, according to France Assureurs. Funds invested around 80% in bonds. In detail, this base includes mainly corporate debt, but also sovereign debt from euro countries. “If the funds in euros contribute to the financing of large European groups, they also finance 20% of the negotiable debt of the French state”, says Cyrille Chartier-Kastler, founder of the Good Value for Money site. The funds in euros would then be crucial to the financing of the French state, so that they would lead to its bankruptcy if they did not exist?…

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