French Home Loan Approvals Skyrocket 33% – Is the Housing Market Finally Turning a Corner?

Paris, France – A wave of optimism is sweeping through the French housing market as new real estate loan approvals surged by a remarkable 33% in 2025, reaching €146.5 billion. This dramatic increase, announced by the Bank of France on Monday, signals a potential recovery after a decade-low in borrowing activity during 2024. But is this a sustainable trend, or a temporary blip influenced by fluctuating interest rates?

From Record Lows to a Significant Rebound

The French real estate market experienced a significant downturn in 2024, with only €110 billion in loans issued – a stark contrast to the peak years of 2021 and 2022, which saw over €200 billion in lending. This rebound in 2025 is largely attributed to a decrease in borrowing rates. The average loan rate began the year around 3.30% and ended slightly above 3%, offering a more attractive environment for potential homebuyers.

Interest Rate Volatility: A Looming Threat?

Even as current rates offer a respite, experts warn that this stability may be short-lived. Caroline Arnould, Director General of the Cafpi broker network, noted a “slight rise during January,” attributing it to “the pressure on refinancing costs caused by delays around the state budget.” The cost of French debt reached historically high levels at the end of 2025, a concerning trend for the long-term stability of borrowing rates.

First-Time Buyers Lead the Charge, Banks Benefit

The surge in loan approvals is particularly encouraging for first-time homebuyers. The Bank of France reports that the number of loans granted to this demographic has increased at a faster rate than overall housing sales and loan applications. Banks are actively supporting first-time buyers with incentives like zero-interest complementary loans, reduced fees and “boost” programs offering up to 10% of the loan amount. First-time buyers are typically borrowing for longer periods, averaging almost 24 years.

This increased activity hasn’t just benefited borrowers; French banking establishments have also seen a boost in profitability. Retail banking networks reported significantly improved financial results for 2025, driven by the increased volume of loans and comfortable profit margins.

December Data Points to Continued Momentum

The positive trend continued into December 2025, with €12.8 billion in new real estate loans issued – slightly above the annual average. The average rate remained almost stable, at 3.08%. It’s important to note that these rates exclude insurance and additional costs; the average total rate for a 20-year loan in the fourth quarter of 2025 was 3.85%, translating to approximately €43,500 in interest on a €100,000 loan.

The French housing market’s recent upswing offers a glimmer of hope for both prospective homeowners and the broader economy. However, the potential for rising interest rates and budgetary pressures means that this recovery remains fragile. Staying informed about market trends and seeking expert financial advice will be crucial for navigating this evolving landscape. For more in-depth analysis of global economic trends and financial news, continue exploring archyde.com.

will Stellantis exit its partnership with Samsung SDI?

Stellantis Considers Exiting Samsung SDI Battery JV amid Costly EV Losses

Stellantis, the automotive giant formed from the merger of Fiat Chrysler Automobiles and PSA Group, is reportedly evaluating a potential exit from its joint venture with Samsung SDI, established to manufacture electric vehicle (EV) batteries. This move comes as Stellantis grapples with significant financial losses in its EV division and a broader reassessment of its battery strategy. The future of automotive batteries and the electric vehicle market is at a critical juncture, and this decision could have ripple effects across the industry.

The Current State of the JV: StarPlus Energy

The joint venture, known as StarPlus Energy, was formed in 2023 with a planned investment of $2.9 billion to build a battery manufacturing facility in Kokomo, Indiana.The initial goal was to supply batteries for Stellantis’ North American EV production,aiming for an annual production capacity of 33 gigawatt-hours (gwh).However, production has been slower than anticipated, and the venture has faced challenges related to technology transfer and cost control.

Recent reports indicate Stellantis is now exploring options that include selling its stake in StarPlus energy or potentially dissolving the partnership altogether. This isn’t a simple decision, given the substantial investment already made and the strategic importance of securing a stable battery supply chain for EV production.

Why the Potential Exit? Mounting EV Losses & Shifting Strategy

Stellantis has been vocal about the financial pressures associated with its EV transition. The company reported billions in losses from its EV operations in 2024 and early 2025, citing high battery costs and competitive pricing pressures. Several factors are contributing to this situation:

* Battery Costs: Lithium,nickel,and cobalt – key components in EV batteries – have experienced price volatility,impacting overall battery production costs.

* Competition: The EV market is becoming increasingly competitive, with Tesla maintaining a strong lead and new entrants like BYD aggressively expanding their market share. This forces automakers to offer competitive pricing, squeezing profit margins.

* Technology Advancements: Rapid advancements in battery technology, such as solid-state batteries, are creating uncertainty about the long-term viability of current battery chemistries.

* Demand Softening: While EV adoption is growing, the pace has slowed in some markets, leading to concerns about overcapacity and inventory buildup.

Stellantis CEO, Carlos Tavares, has repeatedly emphasized the need for profitability in the EV sector, stating that the company will not pursue EV sales at any cost. This stance appears to be driving the reassessment of the Samsung SDI partnership. The company is now leaning towards diversifying its battery supply chain and exploring option battery technologies.

Alternative Battery Strategies: A Diversified Approach

Instead of relying heavily on a single joint venture, Stellantis is actively pursuing a more diversified battery strategy. This includes:

1. Strategic Partnerships: Strengthening relationships with multiple battery suppliers, including ACC (Automotive Cells Company), a joint venture with Mercedes-Benz and TotalEnergies.
2. Direct Investment: Investing directly in battery technology companies and research & growth to gain greater control over battery innovation.
3. In-House Production: Exploring the feasibility of establishing in-house battery production capabilities, even though this is a long-term and capital-intensive undertaking.
4. Next-Generation Technologies: Focusing on the development and adoption of next-generation battery technologies, such as solid-state batteries, which promise higher energy density, faster charging times, and improved safety.

Impact on Samsung SDI

A potential exit by Stellantis would be a significant blow to Samsung SDI, which is heavily invested in expanding its EV battery production capacity. The StarPlus Energy joint venture was a key component of Samsung SDI’s strategy to establish a strong foothold in the North American EV battery market. Losing Stellantis as a major customer would force Samsung SDI to seek alternative buyers for its battery production, potentially impacting its profitability and growth prospects.

the “Phantom braking” Issue & Brand Reputation

While seemingly unrelated, Stellantis is currently facing scrutiny over reports of “phantom braking” in vehicles equipped with certain safety features. (See: https://www.autotitre.com/g/Freinages_fantomes_Stellantis). This issue, coupled with EV losses, adds to the pressure on the company to demonstrate a commitment to safety and quality, further emphasizing the need for a sound and reliable battery strategy. A reliable battery supply is crucial not only for EV production but also for maintaining consumer trust and brand reputation.

What This Means for the Future of EV Batteries

The potential unraveling of the Stellantis-Samsung SDI joint venture highlights the challenges and uncertainties facing the EV battery industry.It underscores the importance of:

* Cost Reduction: Finding ways to lower battery production costs through technological innovation and economies of scale.

* Supply Chain Resilience: Diversifying battery supply chains to mitigate risks associated with geopolitical instability and raw material shortages.

* Technological Innovation: Investing in research and development to accelerate the development of next-generation battery technologies.

* Profitability:

How will Bae Jun-young’s increased carbon tax on coal and oil-fired power plants impact electricity prices for households and businesses in South Korea?

Raising the Price of Power: Bae Jun-young’s Tax Reform Targets Thermal Plants’ Environmental Toll

South Korea’s energy landscape is undergoing a significant shift, driven by a new tax reform spearheaded by Minister of Economy and Finance, Bae Jun-young. This isn’t simply about increasing revenue; it’s a calculated move to internalize the environmental costs associated with thermal power generation, accelerating the nation’s transition towards cleaner energy sources.the core of the reform centers around a substantially increased carbon tax levied on coal and oil-fired power plants, directly impacting electricity prices and incentivizing investment in renewable energy.

The Mechanics of the new Tax

The revised tax structure,implemented January 1st,2026,operates on a tiered system.The carbon tax now ranges from ₩300,000 (approximately $230 USD) per tonne of CO2 emitted for coal plants to ₩150,000 per tonne for oil-fired facilities. This represents a 150% increase from the previous flat rate of ₩120,000 per tonne.

Here’s a breakdown of the key changes:

* coal Plants: Face the highest tax burden, reflecting their significantly higher carbon footprint.

* Oil Plants: Subject to a lower, but still considerable, tax increase.

* LNG Plants: While currently exempt, a phased-in tax is anticipated within the next five years, contingent on advancements in carbon capture technologies.

* Renewable Energy Sources: Remain entirely tax-free, creating a clear economic advantage.

The revenue generated from this tax is earmarked for several key initiatives: funding renewable energy projects, subsidizing energy efficiency upgrades for households and businesses, and supporting research and progress into carbon capture and storage (CCS) technologies.

Impact on Electricity Prices & Consumers

The immediate effect of the tax reform has been a noticeable increase in electricity prices for both industrial and residential consumers. The Korea Electric Power Corporation (KEPCO) has reported an average price hike of 8.5% across all sectors. While this has sparked some public debate, the government argues that the long-term benefits of a cleaner environment and a more lasting energy system outweigh the short-term cost increases.

To mitigate the impact on vulnerable households, the government has implemented a tiered subsidy program. This program provides financial assistance to low-income families to offset the higher electricity bills. Businesses, notably energy-intensive industries, are also eligible for tax credits and subsidies to encourage investment in energy-efficient technologies.

The Push for Renewable Energy Investment

Bae Jun-young’s reform isn’t just about penalizing polluting energy sources; it’s about actively promoting the growth of renewable energy. The increased cost of thermal power generation makes renewable alternatives – solar, wind, hydro, and geothermal – increasingly competitive.

Several major renewable energy projects have already been announced since the tax reform took effect:

1. jeju Island Wind Farm Expansion: A ₩500 billion investment to double the capacity of the existing wind farm.
2. Suncheon Solar Park Development: A new 300MW solar park slated for completion by late 2027.
3. National Hydrogen Fuel Cell Initiative: A government-backed program to accelerate the deployment of hydrogen fuel cell technology.

These projects are expected to create thousands of jobs and significantly reduce South Korea’s reliance on fossil fuels.

International Precedents & Lessons Learned

South Korea isn’t alone in implementing carbon taxes to address climate change. Several countries, including Sweden, Canada, and the united Kingdom, have successfully utilized carbon pricing mechanisms to reduce emissions.

* Sweden: Has had a carbon tax since 1991,and has seen significant reductions in carbon emissions while maintaining economic growth.

* Canada: Implemented a national carbon pricing system in 2019, with provinces having the option of a carbon tax or a cap-and-trade system.

* United Kingdom: Introduced a carbon price floor in 2013, which has incentivized investment in low-carbon technologies.

Though, the success of these policies hinges on careful design and implementation. Key lessons learned include the importance of:

* Revenue Recycling: Using the revenue generated from carbon taxes to fund green initiatives or provide tax relief to consumers.