The rating of France deteriorated to AA by Fitch
The non-compliance with European standards of public deficit ended up paying abroad. The US rating agency Fitch Ratings downgraded the rating Friday of France to “AA +” to “AA” by combining it with a stable outlook mainly because of fiscal slippage. Fitch also described as “weak” economic prospects of the country and said that they weighed on fiscal consolidation and stabilization of the debt ratio.
“The French economy is expected to grow less than the average in the euro area for the first time in four years, “said Fitch. The agency believes that the structural reform agenda of the government “does not appear sufficient to reverse the negative trends that affect the long-term growth and competitiveness.”
“In a difficult economic environment in Europe, the government maintains its course with the implementation of planned economies, with the continuation of reforms needed to boost growth and make them more competitive enterprises,” said Michel Sapin, Minister of Finance, in a statement issued late Friday.
GDP growth of 0.4%
In detail, Ficth Ratings expects growth of French GDP 0.4% in 2014 and 0.8% in 2015, when the “depreciation of the euro and lower oil prices will support growth.” And despite the savings measures 3.6 billion announced by the government, “it will not be enough to change Fitch projections on the dynamics of the public debt of France,” says Fitch Ratings. “This is the second time since late 2012 that the French government delays the goal of reaching the 3% deficit threshold” demanded by the European Union, says Fitch.
“The current policy is beginning to bear fruit, as companies benefit from the first effects of the cuts …
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