” AA + “France is passed to the” AA “with a stable outlook. Fitch also called “weak” the economic prospects of the country and said that they weighed on fiscal consolidation and stabilization of the debt ratio. “The French economy is expected to grow less than the average of countries in the euro zone for the first time in four years,” , said Fitch.
Fitch expects growth of Gross Domestic Product (GDP) french 0.4% in 2014 and 0.8% in 2015, when “The depreciation of the euro and lower oil prices will support growth somewhat” .
The French government immediately responded by ensuring that “the policy starts to bear fruit,” . According Bercy, “companies benefit from the first effects of levies cuts, which will continue in the coming years” . The Finance Minister Michel Sapin, estimated that “the latest indicators confirm growth prospects” of France.
STRUCTURAL STRESS “NOT ENOUGH”
The agency, however, believes that the government’s structural reform program “does not appear sufficient to reverse the negative trends that affect the long-term growth and competitiveness “. Despite the savings measures of € 3.6 billion announced by the government that will lead the 2015 deficit to 4.1% of GDP instead of 4.3% projected earlier, “it will not be enough to change the projected Fitch on the dynamics of the public debt of France “, the agency said.
Fitch also notes that 4.1% of GDP, the projected deficit 2015 “shows no improvement over the 2013″ . The government also plans a deficit of 4.4% for 2014 instead of 3.8% forecast in April.
“In recent deviations in budgetary objectives (…) weaken the credibility budget “, still says the agency adding that ” This is the second time since late 2012 that the French government delays the goal of reaching the 3% deficit threshold “ demanded by the European Union. The French government has postponed this goal to 2017
Read:. Deficit: the waltz of the promises of Michel Sapin
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