The S&P rating agency announced this Friday that it was maintaining the “AA-” rating with a stable outlook, the same as that it had granted last May to the French public debt, despite the political turbulence the country is going through.
When There was speculation he might downgrade France’s rating or go from stable to negative.the decision of this American agency is seen as a a boost to the country’s fiscal strength European Union, at a time when, in the midst of political upheaval, next year’s accounts are being negotiated.
S&P Shows more lenient than the other two major agencies Note, Moody’s and Fitch, which last October maintained France’s rating, but placed it in a negative outlook.
“Despite the political uncertainty, we hope that France will comply – with a truce – with the European budgetary framework and gradually consolidate its public finances in the medium term”, writes the S&P agency.
There was some worry in France about the S&P decision, since French debt exceeds 3,000 billion euros and that the country will have to borrow a record amount of 300 billion euros next year.
For the government, this is good news and a sign of confidence in its work, although it emphasizes that S&P highlights the risks that the country is going through, a call for the attention of opposition parties to give stability to the country, indicated the Ministry of the Economy.
Debt represents 112.9% of GDP this year and the government expects it to peak in 2027, when it will reach 116.5%, before beginning a downward trajectory.
A lowering of the rating would have increased France’s interestswhich would have weighed even more on the country’s accounts.
With this decision, the Executive of Michel Barnier, lack of majority in the lower house to achieve the budgets for 2025 with its parliamentary support, it gains a little oxygen in the negotiation with other groups.
Particularly with the extreme right of Marine Le Pen, who has become her sole interlocutor to be able to move forward on the budgetary path approved by Brussels a few days ago.
In this one, The Government hopes to reduce the public deficit to “around 5%” in 2025, after 6.1% this year, before reaching the level of 3% required by the stability pact in 2029.
Barnier warned that if there was no budget for next year, France could be placed in targets lenders who would raise rates.
CurrentlyFrance already pays more interest than Spain or Portugal and even last Wednesday it briefly overtook Greece, a sign of alarm in the country, which saw its position on international markets deteriorate after President Emmanuel Macron brought forward the legislative elections last June, which plunged the country in great political instability.
