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France gets credit rating reprieve, but doubts persist over budget outlook – POLITICO

“Structural reforms have started to address credit challenges such as high unemployment and weakening competitiveness, but progress in sustainably reducing the budget deficit and public debt is limited,” Moody’s said in its assessment .

France’s public deficit stood at 5.5% of gross domestic product in 2023, significantly higher than the official target of 4.9%. The government is therefore “unlikely” to meet its target of reducing the deficit to 2.9% of GDP by 2027, Moody’s said.

Fitch also wrote that it will be “difficult” for France to achieve its target “as deficit reduction measures remain largely unspecified.” France’s high level of public debt and its poor record on fiscal consolidation constitute “a rating weakness”, Fitch said.

According to Moody’s projections, France’s debt could reach nearly 115% of GDP by 2027.

French Finance Minister Bruno Le Maire said the agencies’ decisions should “encourage us to redouble our determination to restore our public finances and achieve the objective” of bringing the annual deficit below 3.0 percent of the GDP in 2027, AFP reported.

“We will maintain our strategy based on growth and full employment, structural reforms and the reduction of public spending,” said Le Maire.

Politico

Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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