The main reason put forward by the rating agency Fitch when it reduced France's rating from AA- to A+, was the country's political instability at a time when it was facing a deterioration in its public finances. The very alarmist speeches of the previous government, probably made to get unpopular measures accepted, could not leave the agency indifferent. But the A+ rating remains a good level and the financial markets have understood this since the CAC 40 ended up 0.9% today and the Agence France-Trésor issued nearly 8 billion euros of Treasury Bills (BTF) without difficulty ...

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The Prime Minister based his strategy on clarifying France's economic situation. He is seeking, through a vote of confidence in the National Assembly, the approval of his analysis before formalizing and adopting in the framework of the next budget the measures he intends to take to remedy the country's difficulties, first and foremost its excessive debt. So far, this method has not garnered sufficient support from political organizations and it is highly likely that it will be denied confidence. France will enter a new period of political instability.

The situation of public finances is a major issue but ...

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Since the beginning of the month, two important figures relating to the French economy have been published: the latest estimate of the public deficit for the year 2025 and the balance of foreign trade in goods for the first half of the year. Neither of them was a pleasant surprise. With a rate of 5.4% in relation to GDP, an increase compared to 2024, the government is forced to adopt a finance law for 2026 including an effort to reduce the significant deficit, in excess of 40 billion euros, but it does not yet have a majority in the ...

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