Fitch Ratings Issues Warning About France’s Finances

Published On Oct 12, 2024, 9:49 AM

Fitch Ratings has issued a negative outlook for France's sovereign credit rating due to the country's rising debt and budget deficit, which are expected to increase despite the government's efforts to implement an austerity budget. Prime Minister Michel Barnier faces significant challenges in passing the budget through a divided Parliament, raising concerns about France's financial stability. The nation's debt is currently over 3 trillion euros, equating to more than 110% of its GDP, which is the highest among major European economies aside from Greece and Italy.

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Negative

Due to France's deteriorating credit outlook and the significant uncertainty surrounding its budget management, it could lead to reduced investor confidence which may negatively impact the broader European market.

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