France “can no longer” show “indifference” to the signals sent by the markets and “must demonstrate its willingness to stabilize the budgetary situation,” the first president of the Court of Auditors estimated this Wednesday, after the deterioration of France’s note.
If “the French firm remains solid”, “the consequences that can be expected on public policies are not, however, negligible”, estimated Pierre Moscovici in an interview with the newspaper The echoes.
In this context, “France can no longer continue to send signals to markets that are indifferent to it. It must show its willingness to stabilize the budgetary situation,” he added.
“Avoid Uncompensated Tax Cuts”
At the end of April, the Fitch rating agency downgraded France’s rating to “AA-” from “AA”, citing strong social tensions around the pension reform, for the first time since 2013.
Agency S&P Global, which currently rates France “AA” with a negative outlook, will publish its findings on June 2.
To show his credentials, Pierre Moscovici urged the government to “absolutely avoid uncompensated tax cuts, whatever their nature.”
Two months ago, the Court of Auditors had already urged the executive to make the recovery of public finances degraded by successive crises “a national priority”, stopping the lack of ambition in this area.
Source: BFM TV
