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Saturday, December 13, 2014
Heavy blow to the French Government: The analysts of the rating agency Fitch drag the progress in stabilizing the Paris government budget in doubt. The experts reduce France’s rating to “AA”.
The creditworthiness of France has deteriorated Fitch’s view. The analysts lowered their ratings of the second largest economy in the euro zone before the weekend by one notch from “AA +” to “AA”.
The debt reduction’m not quickly enough progress, the creditworthiness Guardian justified their action. Fitch had announced in October given the lame economy growing doubts about the creditworthiness of France and threatened with an imminent downgrade
The experts at Fitch had then called for greater reform efforts of the socialist government -. And were disappointed. For the first time in four years, the growth in France would fall short of the average growth in the euro zone, the credit rating examiner
appreciated now. Retrieved from “negative” to “stable”
The reform program “appears not sufficient to reverse the negative trends, which are on the long-term growth and competitiveness “. However, the outlook for the long-term rating of France was stable, Fitch said. A further downgrade is thus not expected in coming weeks.
More aboutThe French government had previously slightly reduced their deficit forecasts for 2016 and 2017 and thus relied primarily on the announced billion savings. The deficit is thus fall 2016 to 3.6 per cent of gross domestic product and the following year even up to 2.7 percent. The total debt of the country expands so that only comparatively minor. From an effective reduction of high public debt France
Unvergessenes election promises
is still far away.
The percentages, as promised to the French budget deficit also still be significantly higher than the values that President Francois Hollande had announced during his 2012 election campaign. At that time he promised to bring the budget deficit by the end of 2013 under the measure prescribed by the EU Stability Pact three percent limit.
Paris had adopted in September from the target, next year the deficit below in the EU demanded three-percent ceiling to press. Because of the tight budgetary situation, France is also at EU level under pressure. However, Brussels Paris late November to early March deadline granted a one to get his budget through additional measures under control and avoid any possible penalties so.
Source: n-tv.de
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