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FITCH WARNS FRANCE FACES POTENTIAL CREDIT RATING DOWNGRADE
Fitch Ratings warns that France's A+ credit rating is under pressure from rising government debt, weak economic growth and political instability.
France's proposed 2027 budget targets a deficit of 5% of GDP, but Fitch questions the government's ability to stabilize public finances.
Key risks:
Rising debt and borrowing costs
Weak economic growth
Political fragmentation complicating spending cuts
Fitch warns that failure to reduce debt could trigger a negative outlook, while a substantial further increase could lead to a credit rating downgrade.