2023-04-29 02:03:18
A “pessimistic assessment”. Bruno Le Maire thus regrets Friday’s decision by the British rating agency Fitch, which has just lowered France’s rating by one notch to “AA-“. The latter “underestimates the consequences of the reforms” of Emmanuel Macron and his government, further believes the Minister of Economy and Finance.
“Political stalemate and (sometimes violent) social unrest pose a risk to Macron’s reform agenda and could create pressure for more expansionary fiscal policy or a reversal of previous reforms,” writes the rating agency in a press release.
“Total determination” of the government
Bruno Le Maire recalls in a press release “the total determination” of the government “to restore the public accounts within the next four years” in order to reduce the deficit and the debt.
Fitch is the first of the three main rating agencies to downgrade the French rating since the adoption of the pension reform. In her conclusions, she refers to “significant budget deficits and modest progress” in reducing them.
After reaching 4.7% in 2022, the French public deficit should rise slightly this year to 4.9% before gradually declining from 2024, anticipates the government in its stability program published in recent days, which is counting on a back in the European budgetary nails in 2027. Fitch anticipates for its part a 5% deficit this year.
Debt reduction should experience a boost according to the government, with debt representing 108.3% of GDP in 2027, i.e. 4 points less than previously envisaged but still very far from the European objective of 60%. It was at 111.6% of GDP at the end of 2022.
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