Serge Papin, the junior minister for Commerce and Purchasing Power, has proposed allowing employees earning less than two times the minimum wage to withdraw up to 2,000 euros from their company savings plans tax-free. The measure aims to boost consumption amid economic gloom. The amount could rise during parliamentary debates.
In France, concerns over purchasing power have overtaken those about unemployment, with savings hitting record highs. Serge Papin, former CEO of Système U and current junior minister for SMEs, Commerce, Tourism, Artisanry, and Purchasing Power, is addressing this issue head-on. On January 5, he presented social partners with a key proposal: allowing employees earning up to two times the monthly minimum wage to exceptionally withdraw up to 2,000 euros from their company savings plan (PEE) in 2026. This amount would be subject to social charges but exempt from income tax.
The measure would affect about 2% of the 200 billion euros held in PEEs, providing a boost to consumption hampered by the gloomy atmosphere. Aware of the drag from high savings on economic momentum, Papin aims to restore purchasing power for lower-income French workers. While the initial cap is 2,000 euros, parliamentary debates could expand it, making the plan more substantial.
This initiative fits into a broader context where the Prime Minister’s office has prioritized purchasing power with a dedicated ministerial role. It marks a shift in societal worries, from unemployment fears to managing inflation and stagnant incomes.
