Moody's Downgrades France's Credit Outlook to Negative

The decision reflects concerns over France's rising deficit and political instability, despite maintaining its Aa2 credit rating.

Moody's has shifted France's credit outlook from stable to negative, citing the country's inability to curb its budget deficit and debt levels.
France's credit rating remains at Aa2, supported by its large and diversified economy, but faces potential downgrades if fiscal issues persist.
The French government plans to cut public spending by 60 billion euros in 2025 to reduce the deficit from 6.1% to 5% of GDP.
Political fragmentation and instability in France are hindering effective budgetary reforms, raising concerns about future fiscal consolidation.
The decision follows similar moves by Fitch and comes ahead of a review by Standard & Poor's, highlighting ongoing fiscal challenges.