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France’s Economy Minister Warns Latest Credit Downgrade a 'Wake-up Call'
S&P Global’s downgrade marks France’s third in under a year amid political deadlock and public debt nearly double the EU limit, pressuring lawmakers to approve the 2026 budget.
- On Friday, S&P Global lowered France's sovereign credit rating from AA- to A+, making it the third major downgrade within a year after Fitch and Moody's.
- Facing political stalemate, the government has struggled to pass the 2026 budget as the fractured National Assembly blocks progress, while Sébastien Lecornu, Prime Minister , scrapped retirement age reform and survived two no-confidence votes.
- On Saturday, Roland Lescure, Economy Minister, called the downgrade `an additional cloud to a weather report that is already quite grey` and urged parliament to back the government's draft spending plan.
- Ministers urged unity to secure passage of the 2026 budget after the downgrade, while financial markets intensified pressure on the government to act quickly.
- Paris says it can restore finances without cutting core services and focuses on innovation, defence and energy transition as pillars of the government's fiscal strategy.
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The rating agency S&P has reduced France's creditworthiness from AA- to A+, which could increase the interest burden on government bonds. Finance Minister Lescure sees this as a call for responsibility. France is struggling with high new debt and political instability.
·Munich, Germany
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In France, the huge sum of 3,300 billion euros of debt weighs on it. What happens if economic reforms continue to fail and investors lose confidence?
With S&P, the second credit rating agency has reduced France's creditworthiness within a few weeks, which could make it more expensive for the country, which is already heavily indebted – and increase the pressure in the budgetary crisis.
·Hamburg, Germany
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Total News Sources34
Leaning Left3Leaning Right1Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 33%
C 56%
11%
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