International rating agency “Fitch“ has downgraded France's credit rating from AA- to A+, the agency said, which is likely to raise borrowing costs for French government debt, DPA reported, BTA reported.
“Fitch“ pointed to France's high and rising public debt and limited prospects for economic reforms due to domestic political polarization and instability. The agency noted that France has had three different governments since mid-2024, an indication of instability.
On Monday, Prime Minister François Bayrou lost a parliamentary vote of confidence after less than nine months in office and resigned.
France, the eurozone's second-largest economy, now has the third-highest debt ratio in the European Union at 114%, after Greece and Italy. The country's budget deficit recently reached 5.8%, well above the EU's 3%-of-GDP limit.