Overview

• Fitch lowered France’s sovereign rating to A+ from AA- with a stable outlook, pointing to a weakened capacity to deliver fiscal consolidation.
• France’s deficit was about 5.8% of GDP last year and public debt roughly 113%, and Fitch projects debt near 121% of GDP by 2027.
• French 10-year bond yields hovered around 3.47% earlier in the week, signaling higher borrowing costs for the state.
• Prime Minister Sébastien Lecornu scrapped a plan to cut two public holidays and opened talks with left-wing parties and social partners on the 2026 budget.
• S&P Global is set to reassess France in November, and any further downgrades by peers would deepen pressure on funding costs and policy choices.