Following the negative revision of Moody’s outlook on France’s credit rating, French Finance Minister Antoine Armand reaffirmed the country’s commitment to reducing the public deficit. Moody’s adjustment of its outlook from “stable” to “negative” underscores growing doubts about France’s ability to reduce its budget deficit.
Speaking at the annual meetings of the International Monetary Fund and the World Bank in Washington, Armand declared that France had already anticipated a possible negative outlook and was taking steps to manage its debt. The country’s fiscal goal is to achieve a public deficit of 5% of GDP by 2025, a goal outlined in the budget plan earlier this month.
The Minister of Finance underlined the importance of this goal not only as a fiscal milestone but also as a political goal, marking the beginning of efforts to restore France’s fiscal health. In addition to fiscal adjustment, Mr. Armando emphasized the need to balance the budget deficit and boost growth to finance the investments needed for the country’s transition to clean energy.
When asked about the US presidential election scheduled for November 5, 2023, and the possibility of high tariffs being imposed on European goods if Republican candidate Donald Trump wins, Allman declined to comment. But he said France, the United States and other countries needed to work together to counter non-market-based trade practices like China’s. He noted that a coordinated response is essential to prevent further disorder and economic imbalances.
Reuters contributed to this article.
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