Overview

• Fitch Ratings has upheld France's AA- credit rating but continues to assign a negative outlook due to ongoing fiscal concerns.
• The agency highlights France's high public debt, projected at 113.7% of GDP, and persistent budget deficits as significant weaknesses.
• France's 2025 budget aims to reduce the deficit to 5.4% of GDP, but Fitch notes this is less ambitious than initial government plans.
• Economic growth forecasts for 2025 have been revised downward, with Fitch now predicting 0.6% growth compared to earlier estimates of 0.9%.
• Political fragmentation and new spending commitments, such as increased defense funding, are seen as obstacles to sustainable fiscal reform.