Overview

• Moody’s has opted not to update France’s debt rating, effectively maintaining it at Aa3 with a stable outlook.
• The agency’s decision avoids a potential downgrade that could have increased borrowing costs for France.
• France’s fiscal challenges are compounded by political fragmentation and a fragile government lacking a clear parliamentary majority.
• Global economic pressures, including U.S.-led trade tensions and recession fears, add to concerns about France’s fiscal trajectory.
• The French government has committed to reducing its public deficit from 5.8% of GDP in 2024 to 5.4% in 2025, with long-term goals to comply with EU fiscal rules by 2029.