S & P confirms the rating of France to AA stable outlook – Capital.fr

The rating agency Standard & Poor’s confirmed its long-term credit rating of France to AA with a negative outlook remains stable. / File Photo / REUTERS / Brendan McDermid

The rating agency Standard & Poor’s (S & P) announced Friday that it confirms the long-term credit rating of France to AA with a negative outlook remains stable.

S & P points out that the “French government is engaged in reducing the cost of labor and corporate taxation in order to improve the competitiveness of the economy. “

She believes that government spending cuts will gradually reduce the budget deficit to less 3% of GDP by 2017, adding that the public debt should “remain high relative to GDP and continue to grow until 2017.”

In a statement, S & P recalls that the “stable” outlook indicates the possibility of an increase or a downgrade in the next two years is less than one in three.

Last week, Prime Minister Manuel Valls announced that France would achieve 50 billion euros in savings between 2015 and 2017 including temporarily freezing the benefits but without renouncing the recruitment of officials promised François Hollande.

La France, who won last year two more years to bring its public deficit limit of 3% of GDP, must convince the European Commission that it arrives in late 2015 to avoid financial penalties and public embarrassment.

The French government expects an acceleration of growth to 1.0% this year and 1.7% next year, to bring the public deficit of 4 3% of GDP at end-2013 to 3.8% in 2014 and 3.0% in 2015.

The deficit would be reduced to 2.2% in 2016 and 1.3% in 2017. The public debt would be stabilized at 95.6% of GDP in 2015 and would decline from 2016 to reach 91.9% at end 2017.

S & P says France to anticipate a “real GDP growth 1.3% on average for the period 2014-2014, against an average of 1% for 2010-2013. “

(Pierre SERISIER for the French service, edited by Benoit Van Overstraeten)

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