Debt: Borne evokes "close discussions" with Standard and Poor's

2023-05-28 09:07:05

Behind the scenes, negotiations are going well. The government has promoted its reforms and had “very close discussions” with the financial agency Standard and Poor’s, before its expected rating of the French debt in early June, said Elisabeth Borne in an interview broadcast this Sunday by Radio J.

These exchanges took place with the Minister of Finance Bruno Le Maire, said the Prime Minister, who was questioned about the risk of a deterioration in the country’s credit rating, after that inflicted at the end of April by the Fitch agency. “There were detailed explanations from Bruno Le Maire to Standard and Poor’s on everything we are doing to control our public finances,” said Elisabeth Borne.

Finance trajectory to 2027

“I think that we are carrying out reforms, we recently presented a trajectory of our finances until 2027 in which we want, as the President of the Republic had undertaken to do, to reduce our deficit to 2.7% (of GDP ) in 2027,” she argued.

“We also have the commitment, in this trajectory, to lower our debt, and this is what the Minister of the Economy had the opportunity to explain to Standard and Poor’s”, continued the head of government.

The major rating agencies regularly assess the ability of states to repay their debt. At the end of April, the Fitch agency lowered France’s rating, citing the strong social tensions at work around the pension reform.

“Not spectators”

Asked about a possible risk of recession in France – which is the case in Germany in the first quarter -, the Prime Minister estimated that the government “is acting so that this is not the case”. “We are not just spectators wondering what the situation will be,” she said.

“We are acting to support our businesses, economic growth, to support activity, and to be able to have growth, including at the service of ecological transition and growth at the service of our social model”, continued the Prime Minister. .

For François Ecalle, head of the Fipeco site specializing in public finances, one should not, however, give too much importance to the downgrading of the rating in April. “Fitch’s decision did not cause any increase in borrowing rates. The only rating change that would have a real impact would be a move to speculative grade. »