How can precautionary savings be prevented?

It is likely that households (in France, the euro zone) will build up significant precautionary savings due to the high level of uncertainty over public health and the economy . The result would be a protracted weakness in demand. Every attempt should therefore be made to reduce these precautionary savings. How can it be done? By announcing that fiscal policy will not become restrictive and that the tax burden will not be increased (the expectation of a higher tax burden is a possible cause of precautionary savings); By introducing policies to assist job creation so as to drive down unemployment as rapidly as possible (the prospect of persistently high unemployment is also a possible cause of precautionary savings); By introducing tax incentives to stimulate efficient household spending: energy renovation of housing; purchases of electric vehicles; IT equipment (with a view to high growth in remote working); If household precautionary savings remain high despite all these measures, by considering that it is not serious if they finance efficient public spending and corporate investment , but that it would be serious if weak household demand led to a fall in corporate investment. C orporate investment incentives are therefore also a policy to reduce precautionary savings.