2024-06-03 04:54:13 ET
- S&P downgraded France's credit rating from "AA" to "AA-" ahead of the EU parliamentary election, citing concerns over increased debt in the eurozone's second-biggest economy.
- The French budget deficit in 2023 was 5.5% of GDP, which S&P noted was "significantly higher than we previously forecast".
- S&P stated that despite reforms and economic recovery, the deficit is expected to exceed 3% of GDP in 2027.
- The downgrade adds pressure on President Emmanuel Macron's government to detail billions of euros in budget savings needed to keep its deficit reduction plans on track.
- ETFs: ( EWQ ), (FLFR).
- The CAC 40 rose 0.6% to 8,041 on Monday, extending gains from last week.
- Currency: ( EUR:USD )
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More on France
- France manufacturing PMI rises to 46.40 points in May
- France inflation rate unchanged at 2.2% in May, Q1 GDP expands 0.2%
- France records lowest trade deficit since Jan 2021
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S&P cuts France's credit rating from AA to AA- citing failure to control budget deficit