Finance. France’s rating maintained at AA, its debt saved
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France’s debt remains a good investment for international investors, the agency Standard & Poor’s ruled on Friday evening, maintaining its AA rating. It thus did not follow the Fitch agency which, at the end of April, had downgraded the French rating to AA-.
105% of GDP in 2022
If the Minister of the Economy had chosen to keep a low profile in recent days, he should not fail to interpret this non-sanction as a sign of satisfaction for his budgetary policy. Nevertheless, France’s debt ratio remains very high: 105% of GDP in 2022, a rate exceeded only in the “Club Med” countries (Greece, Spain, Italy and Portugal), as the more stringent countries in the north of the euro zone.
This weight weighs on the whole economic policy of the country. It should, for example, prevent any new tax reduction, the Governor of the Banque de France recently estimated in our newspaper, warning against “fiscal illusions”. The weight of the debt also hinders investment in the ecological transition: the economist Jean Pisani-Ferry has just suggested a little additional debt for the benefit of this transition, track immediately closed by the first president of the Court of Auditors Pierre Moscovici“We have such a high public debt that we cannot make it any worse. »
See you on June 19 at the Public Expenditure Conference, where the Minister of the Economy should announce some budgetary belt tightenings for 2024.
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