France credit rating could be reduced

France’s credit rating would be “under pressure” if the country “failed to reduce its large public deficit,” warned credit agency S&P Global on Monday, estimating that the new Assembly would “complicate policy-making.”. For S&P, the vote also “creates uncertainty about the details of France’s economic and fiscal policy strategy” in the coming months.

The 2025 budget, to be drawn up by early autumn, “will give an indication of the new government’s willingness to reduce France’s large budget deficits and comply with EU budget rules,” the ratings agency also explains.

But it believes that the government that emerges from the negotiations “will find it difficult to implement significant policy measures,” as it is under the “persistent” threat of censure. As a reminder, at the end of May, S&P Global downgraded France’s rating from the third-notch “AA” to the fourth-notch “AA-,” a few months after announcing a much higher-than-expected public deficit.

The problem is that the left has a program that wants, for example, to cancel the Macron government’s pension reform, the only serious thing done by the president in tears and blood, and that would have had budgetary effects. On the contrary, the left left strong state economic intervention and pure nationalization, a path that is certainly not appreciated by the rating agencies.

Surely some expect the markets to teach the extreme left the way, but can this left betray its voters?