France Plans to Take 17% From Forgotten Bank Accounts
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The French government is reportedly considering a new fiscal measure for its 2027 budget that would allow it to levy 17% on bank accounts and savings products that have remained inactive for an extended period.
The measure targets so-called dormant funds, including Livret A savings accounts and old life insurance contracts whose owners appear to have lost track of them over time.
According to reports, the government expects the initiative to generate approximately 1.4 billion euros in additional revenue, which would be directed toward the state budget.
Inactive accounts accumulate over time as account holders move, switch banks, or simply forget about savings products opened years earlier. In many cases, no transactions occur for years, yet the funds remain legally owned by the original account holder or their heirs.
French authorities appear to view these unclaimed sums as an untapped source of revenue at a time when the government is seeking ways to narrow its budget deficit. Reducing the gap between state spending and income has become a central priority in recent fiscal planning.
While full details of the proposal have not yet been confirmed, the plan forms part of broader discussions surrounding the 2027 budget, which is expected to include a range of measures aimed at boosting state income.
The proposal is likely to draw scrutiny from consumer advocates and financial experts, who may question whether it is appropriate for the state to appropriate a percentage of privately owned funds simply because they have gone unused.
Banks and insurers are usually required to notify account holders before funds are transferred elsewhere, though enforcement of such rules can be inconsistent, and many savers remain unaware that old accounts still exist in their name.
As the 2027 budget process continues, further details regarding the implementation and legal basis of this measure are expected to emerge, with debate likely to intensify among lawmakers, financial institutions and the public.
Vocabulary7 words
- levy
- to officially take money, like a tax
- dormant
- not active for a long time
- revenue
- money a government receives
- deficit
- when spending is more than income
- appropriate
- to take something for official use
- fiscal
- related to government money and taxes
- heirs
- people who receive money after someone dies
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Quiz
Answer key
1. Levy 17% on inactive accounts and old life insurance contracts 2. To fund the 2027 budget and reduce the deficit 3. False
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Discussion questions
- Is it ethical for a government to take a percentage of privately owned but unclaimed funds?
- What responsibilities should banks and insurers have in tracking down account holders?
- How might this measure affect public trust in financial institutions?
- What alternative methods could governments use to address budget deficits?
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