Can France survive its debt? Fitch issues major warning to the EU’s second-largest economy
PARIS, Oct 31 — The Fitch ratings agency on Friday maintained France’s credit rating at A+ but downgraded it...
Paris, October 31 - Fitch Ratings agency has lowered France's credit rating outlook from "stable" to "negative" amid concerns over the increasing cost of servicing the country's debt. The agency predicts France's debt will surge from 115.7% of GDP in 2025 to 124% in 2028, surpassing its previous projection. France's debt, the second-largest in the European Union, has become increasingly difficult to control due to weaker growth, deteriorating fiscal policies, and higher yields.
The upcoming presidential election in April-May 2025, marked by political divisions and uncertainty in fiscal strategy formation, may further hinder debt reduction efforts. France's economy, which contracted in the July to September period, has also hindered the government's ability to pass the 2027 budget aimed at reducing spending.
Prime Minister Roland Lescure warned that failure to achieve the outlined budget reductions could lead to a fiscal crisis.
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