Fitch downgrades France to AA down – tagesschau.de

Fitch downgrades France to AA down – tagesschau.de

Date: 12/13/2014 01:25 clock

The rating agency Fitch lowered the credit rating of France. The credit rating of the country was downgraded by the second-best on the third-highest grade AA. For reasons stated Fitch, the government’s efforts to push the budget deficit and stimulate the economy, are not sufficient to prevent the downgrade. In the review of the rating agency S & P’s second largest economy is also Euro-AA. Moody’s downgrades France on a second-best score AA1.

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 declared at Fitch. The current reform program “does not appear sufficient to reverse the negative trends, which are on the long-term growth and competitiveness.”

Back in mid October, the rating agency outlook for France to ‘negative “lowered and threatened to lower the credit it. The Agency then reminded the audience stronger reform efforts of the socialist government of President François Hollande -. And was disappointed

Finance speaks of “initial successes” of the reforms

The French Finance Minister Michel Sapin said after the Herabstufungsmitteilung by Fitch, Paris believe in a” difficult economic environment in Europe “at its fixed exchange rate, boost growth, with the economy and should be made more competitive. This “first achieved success” were, Sapin added. French business enterprises benefited from tax cuts, which will continue in the years to come

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France belongs since 2009 to the EU-deficit countries

Paris was forced to retire from the target in September to bring the deficit under the requirement of the EU three-percent ceiling next year. On Thursday, the Treasury set the objective that borrowing by 4.4 percent this year to 4.1 percent and 3.6 over the next two years to reduce until 2017 to 2.7 percent.

Also from the EU, therefore, is France under pressure. Last Monday, the euro group Paris again called on to save, to comply with the requirements of the Euro Stability Pact. However, the euro zone finance ministers followed by the EU Commission and granted France – along with the deficit countries Italy and Belgium – a deadline of March in order to bring their budgets in order. The government in Paris Failing that threaten the country billions in penalties, as it is in the excessive deficit procedure since 2009.