2023-04-28 21:34:00
While the rating agency Fitch lowered France’s rating to “AA-“, in particular because of the pension reform, the Minister of Economy and Finance deplored a “pessimistic assessment”.
The Minister of Economy and Finance Bruno Le Maire regretted Friday the “pessimistic assessment” of Fitch, which lowered the rating of France to “AA-“, believing that the rating agency “underestimates the consequences reforms” in particular that of pensions.
He recalls in a press release “the total determination” of the government “to restore the public accounts within the next four years” in order to reduce the deficit and the debt.
“Political stalemate”
“Political stalemate and (sometimes violent) social unrest pose a risk to Macron’s reform agenda and might create pressure for more expansionary fiscal policy or a reversal of previous reforms,” writes the rating agency in a press release.
The government had recourse to article 49-3 to have the pension reform adopted, dispensing with a vote in Parliament, which led to a marked hardening of social protest.
“This decision has given rise to demonstrations and strikes throughout the country and will probably strengthen radical and anti-establishment forces”, also writes the rating agency which has so far rated France “AA” with a negative outlook. , or the risk of a lowering.
The new rating is therefore “AA-“, with a stable outlook now. Fitch is the first of the three main rating agencies to downgrade the French rating since the adoption of the pension reform.
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