Credit rating agency Moody’s has downgraded France’s seven largest banks this week – just days after lowering the country’s own sovereign credit rating. The move signals rising borrowing costs for France, adding to a €3.2 trillion debt burden and deepening the pressure on an already fragile government.
Former prime minister Michel Barnier, ousted earlier this month, warned of the growing fiscal strain in a last-ditch effort to push through a stringent budget plan. He said France’s interest payments alone were “mounting up to a staggering €60 billion” – exceeding the national defence or education budgets.
