Can the State Seize Household Savings?

The question of whether the State can legally tap into household savings is a sensitive one, especially during periods of economic uncertainty. In France, the concept of private property enjoys strong legal protection, enshrined in the Declaration of the Rights of Man and of the Citizen (DDHC) of 1789. Article 17 states that “private property is an inviolable and sacred right,” and can only be deprived of it when “public necessity, legally established, obviously requires it,” under the condition of “just and prior compensation.” Article 544 of the Civil Code further elucidates the right to property by stating that it grants the right to “enjoy and dispose of things in the most absolute manner,” as long as the use is not prohibited by laws or regulations.

Experts, however, are clear: the State cannot unilaterally decide to access the savings of citizens. Philippe Crevel, president of the Cercle de l’Épargne, emphasizes this point, stating categorically: “No, household savings belong to households, the State cannot unilaterally decide to dip into them.” Any intervention would require a decision by Parliament, which could choose measures such as increasing taxes on savings income, whether from interest or dividends.

Parliament

also has the authority to take measures to prevent panic or what is known as a bank run. This power is codified in the “Sapin 2” law, officially titled the “law relating to transparency, the fight against corruption and the modernization of economic life.” Adopted in 2016, this law allows for the temporary blocking of life insurance share redemptions in order to stabilize financial markets during exceptional circumstances.

What Happens in the Event of Bankruptcy?

But what if a bank fails? Could savings be affected?

While bank failures are rare occurrences, a safety net exists for depositors in France. In 2014, the European Parliament and the Council of the European Union (EU) established the Bank Recovery and Resolution Directive (BRRD), a framework aimed at preventing a systemic collapse of the banking system. Transposed into French law in 2016, this directive paves the way for a “bail-in” system, as opposed to a “bail-out,” where the State directly intervenes to save a failing bank.

The “bail-in” mechanism allows banks to call upon their shareholders and creditors in the event of insolvency. This is done in a highly regulated manner, and only as a last resort. Designated amounts exceeding 100,000 euros belonging to depositors could potentially be affected.

It’s important to remember that any decision to implement a “bail-in” process would need parliamentary approval. Crevel reassures: “we are far from it.” This situation has not arisen in France since 1797.

Diversification: A Prudent Approach

Overall, legal safeguards in place mean that unelected officials cannot seize your savings. Nevertheless, taking proactive steps to manage risk is advisable. Investors are encouraged to diversify their asset portfolio, avoiding the concentration of funds in a single investment. Traditional safe havens like real estate or gold can provide diversification and act as a hedge against volatility.

Are there any legal protections in place to prevent the government from seizing household savings?

## Can the Government Seize Your Savings?

**Interviewer:** Welcome back to the‌ show. Today, we’re diving ​into​ a ‍question many people are wondering about, especially in uncertain economic ⁣times: Can the ⁣government seize⁢ your household savings? ⁤To help us understand the​ situation, I’m joined by financial expert, [Guest Name]. ​Thanks for being‍ here.

**Guest:** It’s my pleasure to be here.

**Interviewer:** Let’s get right to it. There’s​ a ⁣lot of anxiety surrounding⁣ this issue. Can the government simply decide to access our savings​ accounts?

**Guest:**​ That’s a great question, and‌ the short answer is no. While the government⁢ has‍ certain powers, they can’t unilaterally ‍decide to take your money. In many countries, like France,⁣ there are strong legal protections for private property.

**Interviewer:** Can you elaborate on​ that?

**Guest:**⁣ Absolutely. In France, the Declaration of the Rights of Man and of ⁢the⁣ Citizen explicitly states that private property is an inviolable and sacred right. [ [1](https://www.statesavings.bank/Pages/onlinebanking.html)]This means the government would need a very compelling reason,⁤ backed by​ law, and with proper compensation⁢ to the citizens, to even consider interfering with personal savings.

**Interviewer:** So what‌ about emergency ​situations,⁤ like a​ major financial crisis? Could the government ⁣step⁣ in then?

**Guest:** Even in emergencies, the government’s options⁣ are limited. They might be able to take measures⁢ to ⁣prevent a bank run, but ​this ​would likely involve actions like increasing taxes‍ on savings interest, rather than directly seizing⁢ funds. [ [1](https://www.statesavings.bank/Pages/onlinebanking.html)]

**Interviewer:** This is reassuring to hear. It sounds like our⁣ savings are‍ relatively safe from government seizure.

**Guest:** ⁤That’s right. Remember, the government is subject to the rule of law, just like ‌everyone else. They can’t simply take what⁢ isn’t theirs.

**Interviewer:** Thank you for clarifying this important issue.

**Guest:** My pleasure.