{"id":240715,"date":"2025-10-26T05:35:11","date_gmt":"2025-10-26T05:35:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/240715\/"},"modified":"2025-10-26T05:35:11","modified_gmt":"2025-10-26T05:35:11","slug":"moodys-cuts-outlook-on-france-as-lecornu-struggles-to-pass-budget-politico","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/240715\/","title":{"rendered":"Moody\u2019s cuts outlook on France as Lecornu struggles to pass budget \u2013 POLITICO"},"content":{"rendered":"

Friday’s decision “reflects the increased risk that the fragmentation of the country’s political landscape will continue to impair the functioning of France’s legislative institutions,” Moody’s said in a statement<\/a>.<\/p>\n

“This political instability risks hampering the government’s ability to address key policy challenges<\/a> such as an elevated fiscal deficit, rising debt burden and durable increase in borrowing costs,” the agency said. <\/p>\n

French Finance Minister Roland Lescure said in a statement that Moody’s decision<\/a> showed \u201cthe absolute need to build a common path toward a budget compromise.\u201d He added that the administration “remains determined”<\/a> to meet the deficit target of a 5.4 percent of\u00a0GDP\u00a0this year and to get the budget shortfall below 3 percent of GDP by 2029.<\/p>\n

In an interview with POLITICO shortly before the decision was published, Moody\u2019s Chief Credit Officer Atsi Sheth said<\/a> that putting some order in France’s public finances was increasingly “challenging” because of the inability of French parties to find compromises<\/a>.<\/p>\n

The French parliament’s lower house, the National Assembly, earlier this week started discussing the \u20ac30 billion budget squeeze<\/a> proposed by the government for next year.<\/p>\n

In yet another concession to win the Socialists’ support<\/a>, Lecornu promised not to use a constitutional backdoor<\/a> that would have allowed him to bypass a vote in parliament to pass the budget and ignore most parliamentary amendments. <\/p>\n

But that leaves his budget draft\u00a0vulnerable to dilution\u00a0during the parliamentary process<\/a> and to the risk that deficit cuts will be smaller than expected.<\/p>\n","protected":false},"excerpt":{"rendered":"Friday’s decision “reflects the increased risk that the fragmentation of the country’s political landscape will continue to impair…\n","protected":false},"author":2,"featured_media":240716,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,64055,5427,46,3412,637,3418,3419,3424,6107,75871,3322],"class_list":["post-240715","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-credit-rating-agencies","tag-debt","tag-economy","tag-emmanuel-macron","tag-france","tag-french-political-crisis","tag-french-politics","tag-national-budgets","tag-pensions","tag-sebastien-lecornu","tag-tax"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/240715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=240715"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/240715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/240716"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=240715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=240715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=240715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}