The downgrade of France’s rating by S&P on Friday is “a call for lucidity, for responsibility” and, “to convince” the rating agencies, “it is necessary to vote on a budget,” Economy Minister Roland Lescure said on Franceinfo on Saturday. “This decision to change France’s rating from AA- to A+ is the third in a year, the three agencies (Fitch, Moody’s and S&P, ed.) have lowered” France’s sovereign rating, he stressed.
On Friday night, while awaiting its decision at the end of November, one of the largest rating agencies, S&P Global Ratings, announced that it was lowering its rating for France by one level, to A+, citing “high” uncertainty about public finances despite the presentation of a budget for 2026.
“To convince them that our estimates are correct, we must vote on our budget,” declared Roland Lescure. “There is a parliamentary debate, I don’t make the match before having played it,” he added. “It is really up to us, and when I say we, the Government and Parliament, to convince the observers, the rating agencies and the financial markets,” said the Minister.
“A first walk”
“Last Tuesday we presented a budget project for 2026. This project aims to accelerate the reduction of the public deficit to 4.7% of GDP, this year we are at 5.4%. (…) But this budget must be voted on,” he insisted. “It is a very important element, very important, because 4.7% for next year is a first step. The absolute objective is to be below 3% of GDP in 2029, that will allow us to stabilize the debt. So, indeed, it will require efforts,” he noted.
“Despite the presentation this week of the draft budget for 2026, uncertainty about French public finances remains high,” said the S&P agency on Friday evening. According to S&P, if this “public deficit target of 5.4% of GDP in 2025” is achieved, “in the absence of significant additional measures to reduce the budget deficit, budget consolidation over (its) forecast horizon will be slower than expected.”
Source: BFM TV
