S&P Maintains France's Credit Rating Despite Political and Fiscal Challenges

The agency upheld France's AA- rating with a stable outlook, citing fiscal efforts but warning of risks tied to political uncertainty and economic pressures.

• Standard & Poor's has kept France's credit rating at AA- with a stable outlook, following a downgrade earlier in May 2024.
• The rating agency acknowledged the government's efforts to reduce the deficit but highlighted significant risks due to political fragmentation and delayed fiscal reforms.
• Prime Minister Michel Barnier's minority government faces challenges in passing the 2025 budget, with potential motions of no confidence looming in Parliament.
• S&P projects France's deficit to fall below 1% of GDP by 2025 but expressed uncertainty about the country's fiscal trajectory beyond that year.
• The decision comes as financial markets show signs of concern, with France's borrowing costs briefly exceeding those of Greece earlier this week.

11 Articles

Le Journal du Dimanche Le Monde Sud Ouest Le Journal du Dimanche Le Point Le Monde Libération Ouest-France Le Figaro Le Parisien Le Figaro