Economy/Fitch’s rating of France: the “AA+” rating is maintained and placed on negative watch
Paris, October 14, 2014
Michel Sapin takes note of Fitch’s decision and reaffirms the French state’s credit quality
Michel Sapin, Minister of Finance and Public Accounts, takes note of Fitch’s decision to maintain the “AA+” rating and place it on negative watch.
The Minister emphasizes that “in a tough European economic situation, the government is staying on course. Lower growth and inflation than expected have impacted our budget deficits. However, the financial laws adopted by the Council of Ministers and which have started to be debated in Parliament ensure that the commitments made in the spring are being implemented: €21 billion in savings, i.e. an unprecedented slowdown in public expenditure growth in 2015 (0.2% in volume), to put our public finances on a sustainable path; and a step up in the Competitiveness and Employment Tax Credit and the Responsibility and Solidarity Pact, in order to restore competitiveness to our companies. At the same time, the government is pursuing reforms which will help increase the economy’s growth potential.”
Michel Sapin reaffirms that French debt is among the safest and most liquid in the world, with a contained debt service. It has a solid and diversified investor base. This confidence from investors feeds on a consistent economic strategy that the government intends to pursue with determination./.