Credit rating agency Fitch has revised France’s outlook from stable to negative while maintaining its rating at AA-, amid a financial crisis and growing public discontent in the country.
The move comes amid a widening budget deficit, rising public debt and borrowing costs, and political divisions that could affect reforms.
Fitch said France’s budget deficit could reach 5.4% of GDP in 2026, while public debt could rise to 118.5% by 2028. It warned that the lack of a clear parliamentary majority makes it harder to pass spending-control measures.
The decision comes amid widespread protests and strikes across France against an austerity plan involving spending cuts and tax increases worth 60 billion euros. There are concerns that public pressure could derail reforms and further widen the deficit and debt.
The move comes amid a widening budget deficit, rising public debt and borrowing costs, and political divisions that could affect reforms.
Fitch said France’s budget deficit could reach 5.4% of GDP in 2026, while public debt could rise to 118.5% by 2028. It warned that the lack of a clear parliamentary majority makes it harder to pass spending-control measures.
The decision comes amid widespread protests and strikes across France against an austerity plan involving spending cuts and tax increases worth 60 billion euros. There are concerns that public pressure could derail reforms and further widen the deficit and debt.
