What is this “riot tax” that could increase the prices of insurance contracts?
Faced with debt uncertainties and political instability, wealthy investors are seeking to secure their assets in Switzerland and Luxembourg.
Quick Look
- Faced with the debt crisis and political instability in France, wealthy savers are moving their capital to Switzerland and Luxembourg.
- At the same time, the French debt spread narrowed after Moody's maintained its rating.
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Why It Matters
France faces rising public debt and growing political instability ahead of the presidential election.
“The movement is accelerating”: faced with the economic and political crisis, rich savers are turning to Switzerland and Luxembourg.
DECRYPTION - Debt slippage, specter of a financial crisis, political blockage... A few months before a presidential election which promises to be chaotic, more and more wealthy French savers are seeking to shelter their assets abroad.
Debt: the gap between French and German borrowing rates experienced its sharpest decline since 2020 on Monday.
After the surprising maintenance of the French rating by the Moody's agency on Friday, the “spread” recorded its largest drop, of around 0.14 percentage points, since March 2020.
Attal, de Villepin, Le Pen… Create a French sovereign fund, an option that appeals to politicians but is difficult to implement.
Providing the country with an investment fund intended in particular to finance reindustrialization and the development of future projects is almost unanimous among the presidential candidates. But the obstacles to carrying out this project are numerous.
Open Questions
- What will be the concrete measures for the sovereign fund?
- Will the exodus of capital intensify?
