France maintains its 17 out of 20. Friday evening, the S&P rating agency chose to remain at an “AA-” and to maintain stable perspective. Given the context, the political upheavals and the threat of government censorship, the news may come as a surprise.
But the agency highlights the efforts of the Barnier government to reduce the public deficit. Clearly, the message bludgeoned by the Prime Minister reassures investors. Return to a 5% deficit next year, save 60 billion euros in the budget… So many announcements which preserve France's credibility on the financial markets for the moment.
According to several economists, this decision is more a pledge of confidence granted to France while it implements the announced measures. Precisely, S&P warned: “We expect France to consolidate its public finances in the medium term.” The government welcomed this news.
A month and a half ago, France saw its rating unchanged by the Fitch and Moody's agencies, but with a negative outlook. In financial jargon, it is a reprieve before a deterioration. Political uncertainty had been blamed. Friday evening, S&P warned: “Growing political fragmentation delays the adoption of a credible budget.” An argument that the Minister of the Economy, Antoine Armand, did not fail to emphasize as soon as the rating was published.
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Reopening of Notre-Dame de Paris – Five years after the devastating fire of April 2019, the Cathedral has regained its “shine”. Friday, Emmanuel Macron made a final site visitcongratulating himself on having taken on the “insane challenge” of reopening the cathedral in five years.
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