Fitch degrades the rating of France: L’Express offers evaluation – L’Express

Fitch degrades the rating of France: L'Express offers evaluation – L'Express

France suffered Friday night a further deterioration in its sovereign rating by Fitch Ratings agency. A decision that does not frighten officialy Paris. The government ensures that its stimulus policy began “to bear fruit”.

In the debate on sustained notes in school, L’Express offers the student assessment France.

The problem

By imposing a supply policy, the government sent a message to support the markets. Yes, France “like companies” and many of them account for economic recovery. But for investors, it is the creditworthiness of the country with its ability to repay. And so, to honor its signature.

What’s strength

Despite its deterioration, the situation is not catastrophic in the short term. “The French debt is among the safest and most liquid in the world,” please remind Bercy. Indeed, the state borrows at low cost. On 8 December, France has borrowed on the markets more than 7.1 billion euros at slightly higher rates but still negative.

Since the end of August, investors who lend to France lose money! An unprecedented situation that does not fail to point out the government. “This investor confidence feeds on a coherent economic strategy, the government intends to continue with determination”, indicated Friday night and service Michel Sapin.

France remains a student with great potential that we want to encourage. But be careful not to rest on its laurels.

This is not yet assimilated

The problem of student France is that since its “negative watch” by the class council October 14, 2014, the running of the government does not believe the rating agency. Another agency, Standard and Poor’s has revised its outlook from October “stable to negative”, putting the French government under pressure from further deterioration.

The problem with the student France, is that he always said he is working, but that in controls, it does not write what he thinks. His Minister of Economy has been successful in getting the idea of ​​responsibility pact the President of the Republic. But he would also like more flexibility in employment, why not return to the dogma of the 35 hours. This poses a political problem sacred to the left.

So, when making its budgetary copy this fall in Brussels, it does not really satisfied with the European Commission, which was given a little time to analyze the situation. And probably ask for more structural efforts to France next March. In front, the government boasts a historical savings plan and request more investments by the Member States to start the machine.

If the impact of this degradation should have a “limited” impact on the markets for some analysts, this still puts a little more pressure on the signing of France for the coming quarters.