Rating agency Fitch downgraded France's rating by one notch to "AA-" on Friday, citing recent social tensions that will weigh on the ability to reduce the deficit and debt, as well as lower growth prospects. than anticipated. "Political stalemate and (sometimes violent) social unrest pose a risk to Macron's reform agenda and could create pressure for more expansionary fiscal policy or a reversal of previous reforms," writes the rating agency in a press release.
The Minister of Economy and Finance Bruno Le Maire on Friday regretted the “pessimistic assessment” of Fitch, believing that the rating agency “underestimates the consequences of the reforms” in particular those of pensions. He recalls in a press release "the total determination" of the government "to restore the public accounts within the next four years" in order to reduce the deficit and the debt.