Empowered Investor: a Potent Check on Power!

In a bid to stimulate economic growth and job creation, French deputies Karine Berger and Dominique Lefebvre have recommended encouraging savers to invest in companies. This approach, they believe, could lead to the creation of wealth, secure the future of retirement, make taxes more bearable, and finance quality public services.

However, the French economy has been struggling, with the National Institute of Statistics and Economic Studies (INSEE) reporting that growth has been hovering around 0% for several months. To address this, there is a need to instill a taste for entrepreneurship and innovation in the French mindset.

One initiative to diversify the sources of financing for companies is the PME PEA (Entreprise de Taille Moyenne Participations) and related initiatives. The government recognises the importance of engaging more in the economy's growth to foster job creation and improve public services.

Investment in stocks and stock funds currently represents less than 10% of the French's wealth. Individual shareholding, however, can serve as a counter-power against short-term speculation. Encouraging popular shareholding, the deputies suggest, is in the interest of all.

The German government's initiative "Deutschland macht mehr aus seinem Geld" aims to promote investments in small and medium-sized enterprises' stocks, regardless of their stock market listing, with tax advantages. Major publicly listed companies like Siemens and Volkswagen have opted for a mobilising communication tactic to better illustrate the value of private capital ownership for the economy and to increase economy-oriented savings influence.

Pressure on companies to relocate their activities and head offices is a concern. Foreign investors, who currently own nearly half of CAC 40 companies, may not always have objectives that align with medium/long-term development strategies and the balance of interests. The report suggests promoting a charter of the entrepreneurial spirit to counter this.

The "Shareholders' Village" is a new event aimed at strengthening the relationship between shareholders and companies, by investing in pedagogy and exchange. The goal is to encourage a portion of the 3 trillion euros in life insurance and savings books to provide companies with additional means for development. Several large listed groups are also leading a communication action to promote popular shareholding and boost the economy-oriented savings.

The economy needs capital for innovation, development, and job creation, especially in a context of increased competition. The report by Berger and Lefebvre does not mention specific tax advantages or events like the "Shareholders' Village" or the "PME PEA" for encouraging shareholding. Nor does it address the current economic growth rate or the need for diversifying financing sources for companies. However, the call to action remains clear: encouraging popular shareholding could be a key step towards revitalising the French economy.