” 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 GDP of 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 current policy is beginning to bear fruit (…) companies benefit first effects of levies cuts, which will continue in the coming years “.
The Finance Minister Michel Sapin, estimated that ” the latest indicators confirm the outlook for growth ” of France
Read decryption. Deficit: the waltz of the promises of Michel Sapin
EFFORT STRUCTURAL “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 growth term competitiveness “.
Despite the economy measures 3.6 billion announced by the government that will lead the 2015 deficit to 4.1% of GDP instead 4.3% forecast earlier, “this will not be enough to change Fitch projections on the dynamics of the public debt of France” .
Fitch also notes that ‘to 4.1% of GDP, the deficit for 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. The French government has postponed this goal in 2017.
“In recent deviations in budgetary objectives (…) weaken fiscal credibility. C is the second time since late 2012 that the French government delays the goal of reaching the 3% deficit threshold “.
October 10 the competing agency Standard and Poor’s, had also issued a warning to France, by passing “negative” instead of “stable” the prospect of changes in the rating of its debt, it maintained at “AA” . Standard and Poor’s is traditionally tough on France, it had been the first to deprive him of his “triple A” , in January 2012. The third major agency Moody’s is the last now to continue to pay the second highest possible rating to the quality of the French debt
View interactive visual. Rating agencies and markets, two sometimes contradictory realities
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