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Weekly Basics: Watch Out For Inflation! Increase interest rates on mortgages. Environmental Bonus Extension. Investment fraud: see the Arab Monetary Fund blacklist

(Image credits: Adobe Stock -)

(Image credits: Adobe Stock -)

Net life insurance flows reached their highest level in ten years in the first five months of 2022. Inflation exceeded 10% in nine out of the nineteen countries in the eurozone. The cap rate for real estate loans increased by 17 basis points on July 1, 2022. The environmental bonus was extended until the end of 2022. The real estate market remains dynamic in Ile-de-France. A transition period begins in the last six months of 2022 for border and cross-border workers working from home. Financial moderators have updated their blacklists of sites offering investments in the unregulated foreign exchange market and crypto assets.

index:

  • Life insurance: net inflows at a ten-year high

  • Inflation is close to 10% in the Eurozone

  • Mortgage credit: cap increase by 17 basis points

  • The Environmental Bonus has been extended until December 31, 2022

  • Ile-de-France: the real estate market is still dynamic

  • Social Security: A period of transition for border workers and cross-border workers

  • Investment: Update admin blacklists

Life insurance: net inflows at a ten-year high

Life insurance net inflows amounted to 12.4 billion euros in the first five months of 2022, 2.8 billion euros more than in the same period in 2021 and the highest in a decade, according to data published by the France Assureurs association. Contributions have also reached levels not seen in ten years: €65.6 billion since the start of 2022. The share of contributions placed on units of account, has been stable for several months at around 40%. Life insurance contracts outstanding amounted to €1.847 billion at the end of May 2022, up 0.6% year-on-year.

Inflation is close to 10% in the Eurozone

Consumer prices rose 8.6% year-on-year in June 2022 in the eurozone, versus 8.1% in May 2022, according to data from the European Union’s statistical office, Eurostat. Inflation has now exceeded 10% in nine out of the nineteen countries in the eurozone. In France, where inflation reached 5.2% over one year in May 2022, the government is planning several measures under the purchasing power bill. In particular a device to reduce the increase in rents to less than 3.5% and an allowance to help people who are forced to use a car to reach their workplaces to cope with rising fuel prices.

Mortgage credit: cap increase by 17 basis points

On July 1, 2022, the usury rate, that is, the maximum rate at which a loan can be granted, increased by 17 basis points for mortgages of twenty years and over (from 2.40% to 2.57%), as well as for mortgages less than twenty years old (from 2.43 % to 2.60%). There has been no such change since the second quarter of 2017, when rates were declining. In the context of rising inflation and rising central bank key interest rates, this increase in usury rate would stimulate the mortgage market. The housing loan production growth rate is already high, reaching 6.8% YoY in April 2022.

The Environmental Bonus has been extended until December 31, 2022

The Minister of Economy, Finance, Industrial and Digital Sovereignty, Bruno Le Maire, announced the extension of the scope of assistance for the purchase of an electric car, which was originally scheduled to be adjusted on June 30, 2022, until December 31, 2022. Thus, the environmental bonus is maintained at 6000 euros for an electric car priced less than or equal to 47,000 euros. The bonus of €1,000 for rechargeable hybrid cars with a maximum price of €50,000 is also extended until the end of 2022. From January 1, 2023, the scale will be reduced by €1,000 and plug-in hybrid vehicles will be excluded from the scheme.

Ile-de-France: the real estate market is still dynamic

The real estate market in Ile-de-France remains very dynamic, with a 3% increase in sales of old homes from February to April 2022 compared to the same period in 2021, according to the latest note on the real estate situation from Notaires de Grand Paris. As for prices, they rose 2.6% in April 2022 over the course of a year, with house prices rising sharply (+6.3% in one year) and apartment prices falling (+0.8%). The latter is pulled down due to the erosion of values ​​in the capital, and notaries confirm. In Paris, the average price per square meter for older apartments decreased by 1.2% in one year, reaching €10,500 in April 2022.

Social Security: A period of transition for border workers and cross-border workers

The government said in a press release that the flexible application of European social security rules in the case of remote work of border workers and cross-border workers has been extended until December 31, 2022. The health situation no longer justifies this flexibility, but it appears that it is necessary to provide a transition period, especially to prepare for a possible change In these rules, they are specified. In the context of the health crisis, the EU member states have put in place these flexibility measures in order to avoid changing the legislation applicable to social security.

Investment: Update admin blacklists

The AMF and ACPR recently updated their blacklists of sites that offer, without authorization, investments in the unregulated foreign exchange (Forex) market and derivatives that are based on crypto-assets. Since the beginning of 2022, 28 unauthorized sites have been added in the forex category and one in the crypto-asset derivatives category. The blacklists are updated regularly but are not exhaustive, the moderators caution, and call on savers to be vigilant. Over the past two years, French scam victims have lost close to a billion euros.

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