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Artus – Savings: the coming war

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CHRONIC. A conflict will appear between countries capable of financing their investments linked to the energy transition and their public spending.

By Patrick Artus

The countries which have a sufficient savings surplus, a significant surplus in their current account, are the OPEC countries, but also to a lesser degree those of the euro zone, China and the countries of South Asia. East.
© THIBAUT DURAND / Hans Lucas via AFP

NOTWe call the conflict that will appear between different countries to obtain a sufficient amount of savings to finance their investments and public spending “war for savings”.

Indeed, we must expect a sharp increase in the need for investment, due to the energy transition (production and storage of renewable energy, decarbonization of industry and transport, thermal renovation of buildings and housing) , maintaining biodiversity, water management. Additional public spending on defense, education, health and Research and Development will also be required. Finally, spending will be necessary to maintain the purchasing power of the lowest-income households, who will be faced with rising prices…

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