Credit rating agency Standard & amp; Poor’s (S & amp; P) has downgraded the outlook for the French economy
France still retains its AA credit but. the ‘outlook’ goes from stable to negative. According to S & amp; P, there is one chance in three that the creditworthiness of France in the next two years will be reduced
<. strong> Budget
The ratings agency is concerned about the budget of France. The French government announced earlier this month that it will comply with the European standard for a budget deficit of up to 3% of gross domestic product (GDP). Until 2017 Previously, Paris had already promised to meet that standard in 2015
S & amp; P now expects France in the period 2014 -. 2017 an average fiscal deficit of 4.1% of GDP books. In April, the rating went from an average deficit of 3.2% of GDP.
Growth
The revised forecasts relate to the disappointing economic development in the country, says S & amp; P in a statement. “We think that the recovery of the French economy will prove unfeasible, and that the public finances of France will deteriorate until after 2014. Further
The French finance minister Michel Sapin, responded by saying that the debt of France is still” one of the safest in the world ‘is the message. “We will implement reforms to boost economic growth in the medium term,” said Sapin.
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