France’s Finance Minister Bruno Le Maire has confirmed that the country will continue with its structural reforms to overhaul its economy, despite the recent credit downgrade from Fitch, which lowered France’s debt rating to “AA-” from “AA”.
Fitch stated that France’s fiscal metrics were weaker than its peers, with its high level of government debt being a particular concern. Fitch also suggested that political deadlock and protests could put pressure on President Emmanuel Macron to reverse his proposed fiscal policies and reforms.
President Macron has proposed a series of unpopular reforms to the country’s pension system, which includes increasing the retirement age to 64 from 62, citing the need for financial viability. However, his approval ratings have plummeted and he has set a 100-day target to relaunch his second term.
FMinister Le Maire has dismissed concerns about the government’s direction and has vowed to accelerate the reduction of France’s debt, reduce the deficit, and make faster cuts to public expenditure. He remains confident that France is able to implement structural reforms and will continue to do so for the benefit of the country’s economy.