France Faces Negative Outlook from Moody’s Over Fiscal Pressures

Moody’s Investors Service revised France’s credit outlook from stable to negative, citing growing fiscal strain and fragmented political conditions. The agency said persistent spending commitments and rising debt costs could hinder budgetary reforms. France maintained its Aa2 rating, but markets anticipate higher borrowing costs if consolidation plans stall. The finance ministry reaffirmed fiscal-discipline goals to restore investor confidence. Economists noted the downgrade signals broader challenges facing European economies balancing social expenditure with post-pandemic recovery and monetary-policy tightening.