Overview

• Moody’s decided not to update France’s credit rating, effectively maintaining it at Aa3, following its December downgrade from Aa2.
• The agency pointed to ongoing political instability, including the government’s lack of a clear parliamentary majority, as a significant factor in fiscal policy uncertainty.
• France’s 2025 budget includes €55 billion in fiscal measures aimed at reducing the deficit, with additional reforms expected in the coming months.
• Global trade tensions, particularly between the US and China, are exacerbating economic pressures, raising concerns over borrowing conditions and growth prospects.
• The French government has revised its 2025 growth forecast to 0.7%, down from 0.9%, as it works to stabilize public finances and avoid further rating downgrades.