Reported 4 months ago
S&P Global Ratings downgraded France's credit rating to AA- from AA, criticizing the government's missed budget deficit goals post-Covid pandemic spending and energy crisis, impacting President Macron's economic reformer image before European elections. Despite reforms and economic growth recovery, the deficit is expected to remain above 3% of GDP in 2027. Finance Minister Le Maire defended the government's economic strategy, aiming to reduce the deficit below 3% by 2027 due to increased debt from pandemic spending. This downgrade puts France seven notches above junk status, raising concerns about the country's debt sustainability. Macron's government faces opposition backlash and challenges in advancing economic policies amid political fragmentation and protests.
Source: YAHOO