Fitch Ratings put France on negative outlook a day after the government presented its 2025 budget, delivering a rapid critique of Prime Minister Michel Barnier’s efforts to deal with a sharp deterioration in public finances.
The ratings firm’s reproach comes after it already downgraded France to AA- from AA in April last year, a credit assessment it shares with the the UK and Belgium.
"This year's projected fiscal slippage places France in a worse fiscal starting position, and we now expect wider fiscal deficits, leading to a steep rise in government debt towards 118.5% of GDP by 2028," Fitch said in a statement, while maintaining France's rating at "AA-".