“I’ve to inform you, in actuality the principle purpose for this downgrade is that we saved the French financial system,” Le Maire stated in an interview with Le Parisien revealed proper after the scores choice was introduced. The downgrade “may have no influence on the day by day lifetime of the French,” he stated.
“This important spending has clearly elevated our debt, but additionally allowed us to avoid wasting our companies and jobs,” Le Maire added.
Whereas lauding previous French labor-market reforms undertaken underneath French President Emmanuel Macron, the score company expressed doubts on the federal government’s capability to additional reform with out an absolute majority within the parliament.
“We imagine political fragmentation provides to uncertainty relating to the federal government’s capability to proceed implementing insurance policies that improve financial progress potential and tackle budgetary imbalances,” S&P wrote.
The score choice got here a day after Le Maire celebrated his document seven-year tenure on the financial system ministry by sharing some charcuterie and wine together with his closest allies on Thursday.
After years of massive spending to face the financial crises attributable to the pandemic, excessive vitality costs and Russia’s invasion of Ukraine, France is now tightening the belt. Le Maire’s ministry in April introduced spending cuts of €10 billion for the second time this yr.
