Standard & Poor's rating agency downgraded France's sovereign rating from AA- to A+ on Friday evening, citing persistent uncertainty over public finances despite the 2026 budget proposal. This anticipated decision, the third in a year, is largely attributed to the suspension of pension reform. Economy Minister Roland Lescure sees it as a call for lucidity and collective responsibility.
Standard & Poor's (S&P) announced on Friday evening the downgrade of France's sovereign rating from AA- to A+ with a stable outlook. This decision, originally expected on November 28, was brought forward despite the presentation of the 2026 budget proposal to Parliament this week. S&P justifies it by stating that 'despite the presentation this week of the 2026 budget project to Parliament, the uncertainty weighing on French public finances remains high.'
For Éric Dor, director of economic studies at IÉSEG School of Management, 'what changed the game is the suspension of the pension reform,' announced by Minister Sébastien Lecornu this week. According to him, this will have no short-term impact on France's ability to borrow on the markets, but Paris is 'not safe' from a black scenario in the longer term.
This Saturday morning, the new Economy Minister, Roland Lescure, reacted on Franceinfo, taking note of this third downgrade in a year following Fitch's last month. 'It is a call to lucidity, responsibility,' he stated, emphasizing that 'we cannot ignore this cloud.' He confirmed the determination to meet the 5.4% GDP deficit target for 2025, which S&P endorses, but the agency forecasts 5.3% for 2026 against the government's 4.7%.
Lescure stresses the need to pass the 2026 budget to reassure the agencies: 'The budget must be voted.' He highlights France's strengths, such as a diversified economy, resilient growth, and high savings levels. With Minister Amélie de Montchalin, he commits to stabilizing public debt below 3% by 2029, accelerating in 2026, and calls for collective parliamentary responsibility.