The downgrade comes as France is going through a political crisis and is struggling to cut its massive public debt.<\/p>\n
On Tuesday, French President Emmanuel Macron appointed S\u00e9bastien Lecornu as prime minister after his predecessor, Fran\u00e7ois Bayrou, was toppled a day earlier in a confidence vote over the \u20ac43.8 billion budget squeeze he proposed for next year.<\/p>\n
“We expect the run-up to the presidential election in 2027 will further limit the scope for fiscal consolidation in the near term and see a high likelihood that the political deadlock continues beyond the election,” the agency said.<\/p>\n
If Fitch’s downgrade is followed by the other major rating agencies, it could spell trouble for France. Moody’s<\/a> and Standard & Poor’s<\/a> will assess the country’s credit rating in October and November, respectively.<\/p>\n The government has pledged to bring the country’s deficit down to 4.6 percent of gross domestic product next year and to bring it under 3 percent, as required by EU rules, by 2029.<\/p>\n Economy Ministry Eric Lombard took note<\/a> of Fitch’s downgrade,\u00a0stressing that the French economy is solid despite the situation of its public finances and political uncertainty. He said that Lecornu was already negotiating “to adopt a budget for the nation and continue efforts to restore our public finances<\/a>.”<\/p>\n","protected":false},"excerpt":{"rendered":"The downgrade comes as France is going through a political crisis and is struggling to cut its massive…\n","protected":false},"author":2,"featured_media":156418,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[150,28,6883,80699,7522,3055,101,526,1070,5607,1872,80700,939,594,72587,95523,9006,5722,95524,3733,14882],"class_list":{"0":"post-156417","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-budget","9":"tag-business","10":"tag-coronavirus","11":"tag-credit-rating-agencies","12":"tag-crisis","13":"tag-debt","14":"tag-economy","15":"tag-education","16":"tag-elections","17":"tag-emmanuel-macron","18":"tag-energy","19":"tag-eric-lombard","20":"tag-finance","21":"tag-france","22":"tag-francois-bayrou","23":"tag-national-budgets","24":"tag-payments","25":"tag-pensions","26":"tag-sebastien-lecornu","27":"tag-tax","28":"tag-welfare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/156417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=156417"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/156417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/156418"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=156417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=156417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=156417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}