France, S&P confirms “Aa-/A-1+” ranking. Stable outlook | EUROtoday

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The first impediment has been overcome. Somewhat surprisingly, the Standard & Poor’s ranking company not solely confirmed France’s ranking, minimize in May to AA- from AA, but in addition maintained its “stable” outlook. The second impediment stays, the political one: Michel Barnier, the French Prime Minister who dangers a movement of censure for his minority authorities, he sees the deadline approaching of the ultimatum of the Rassemblement nationwide, the unconventional right-wing drive that threatens an unprecedented convergence with the left to disqualify the manager.

«Slow consolidation of public funds»

Standard & Poor’s, final evening, was even reassuring: «Despite the political uncertainty – it defined – we count on France to conform, with a sure delay, with the EU fiscal framework and to regularly consolidate public funds within the medium time period ». The markets might now relax: whereas ready for the ranking, they pushed the yields of the 10-year Oat to the identical degree because the Greek GGB, round 3 %.

The rock of censure

The censure However, it might nullify every little thing: it might trigger the federal government to fall, and the technical time wanted to appoint one other would trigger the nation to fall right into a kind of “provisional exercise” which nevertheless wouldn’t stop some measures from falling into disuse. The deficit, which is able to attain 6.1% of GDP in 2024, might rise to 7 %. The maneuver, which at present quantities to 60 billion, might develop into much more inflexible. In 2025, France should situation bonds to boost 300 billion euros and, the prime minister defined, curiosity funds might attain 60 billion. “I would prefer this money to be invested in industry, agriculture, security, education.”

Barnier: «We proceed to regulate the steadiness sheet»

Barnier due to this fact continues to work to keep away from mistrust. In latest days he met with all of the opposition events. «We proceed to enhance it, to regulate it – he stated yesterday relating to the finances – to take into consideration the votes, the requests of the totally different teams, and never only one group, however all of the teams». The goal “is to find a balance that allows us to maintain the ambition of reducing the deficit to reduce the debt one day.”

Marine Le Pen’s robust strategy

The downside is that Marine Le Pen appears decided to more and more increase the value of her abstention. «There are nonetheless difficulties. It’s Thursday: he has till Monday”, he said on Thursday, denying the president of the party, Jordan Bardella, who had already spoken of a “victory” after the first concessions. The president of the Rassemblement group at the Assemblée nationale preferred to repeat the “crimson strains” that the government must respect. The first is the increase in taxes on electricity, which RN does not want. Barnier has already given in, and promised to take a step back, but that’s not good for Marine Le Pen. «Michel Barnier’s latest announcements – he wrote in X – are not financed by structural savings. They therefore deepen an already abysmal deficit and this is not acceptable.” The contradiction is clear and it’s no coincidence that the newspaper Le Figaro has raised some doubts among the many 125 deputies of the RN, who worry an excessively harsh place on the a part of the occasion, with the chance of placing France in a really harmful state of affairs.