Earlier this month, U.S. credit rating agency Fitch upheld its AA- rating for French debt, but shifted the outlook from "stable" to "negative." On 25 October, Moody’s is set to deliver its assessment. If France’s budget plans falter, the country risks a credit rating downgrade, which would drive up borrowing costs and further inflate the national debt, which currently stands at a staggering €3.2 trillion.
On October 11, Fitch's decision to downgrade France's economic outlook to "negative" serves as a warning to Prime Minister Michel Barnier, who is struggling to push his 2025 budget through parliament. The credit agency's assessment signals a potential downgrade if the government fails to take swift action to improve public finances.
