2023-11-30 20:41:32
By Julie Ruiz
Published 1 hour ago, Updated 1 minute ago
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The atmosphere is very tense in Bercy, says a deputy close to Bruno Le Maire. Xose Bouzas/Xose Bouzas / Hans Lucas via Reu
STORY – The rating agency must update, Friday evening, its rating on France’s capacity to reform and clean up its accounts. The State, which is struggling to reduce its spending, now owes more than 3,000 billion euros to its creditors.
This is a particularly anticipated decision, given the context of French public finances. If France avoided a downgrade of its credit rating this fall – Moody’s and Fitch maintained their rating, unchanged in October, tension is rising at Bercy while the third major rating agency, S&P, must, in turn, make its verdict on the French debt Friday evening.
Currently, the French public debt rating, AA, has a negative outlook. Basically, a downgrade on the part of S&P could cause an increase in the cost of money for France on the markets, in a context where the overall increase in interest rates increases the debt burden. The situation is already alarming, as the debt burden will be the State’s largest expenditure item in 2027, ahead of the National Education budget.
“Have 4-4”
During its last review, in June, S&P notably highlighted “risks” relating to the execution of budgetary commitments…
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