Overview

• Fitch cut France’s sovereign rating from AA- to A+ and assigned a stable outlook.
• The agency cited difficulty forming a credible budget following Prime Minister François Bayrou’s resignation and growing domestic polarization.
• Fitch judged it unlikely that France will reduce its budget deficit below 3% of GDP by 2029 as the government intends.
• French borrowing costs have risen, with 10-year yields climbing toward Italian levels around 3.5%, signaling pricier market financing.
• France’s debt stood near 114% of GDP with a 5.8% deficit in 2024, and new Prime Minister Sébastien Lecornu is seeking cross-party concessions to pass a 2026 consolidation budget.