“Political stalemate and sometimes violent social movements pose a threat to French President Emmanuel Macron’s reform agenda,” the agency wrote in a statement announcing a one-notch downgrade in France’s rating. AA-negative”, compared to AA before.
Six weeks ago, the French government finally adopted its plan to reform the pension system, which plans to raise the legal age from 62 to 64.
Based on article 49-3 of the Constitution, the text was adopted without a vote in Parliament.
The move led to escalating protests and days of violent demonstrations across the country.
“The move has sparked nationwide protests and strikes and is likely to bolster radical and anti-establishment forces,” said Fitch Ratings, which attributed its previous rating to a negative outlook.
She added that the current stalemate could “lead to pressure for more expansionary fiscal policy or to undo past reforms.”
In response to Fitch’s announcement, French Finance Minister Bruno Le Maire told AFP on Saturday that France would continue to “pass structural reforms”.
He added: “I think the facts belie Fitch’s assessment. We are able to push through structural reforms in the country”, mentioning in particular the reform of unemployment insurance and the pension system.
“We will continue to push through the country’s structural reforms,” Le Maire said.
Fitch is the first of the three major international credit rating agencies to downgrade France since the adoption of the pension reform.
Read the Latest World News Today on The Eastern Herald.
