The Fitch agency on Friday lowered the French rating by a notch, citing the strong social tensions at work around the pension reform. Fitch also expects growth to be less robust than expected in its previous November forecast.
The current deadlock could also "create pressure for a more expansionary fiscal policy or a reversal of previous reforms," says Fitch. The French public deficit is expected to rise slightly this year to 4.9% before gradually declining from 2024, anticipates the government in its stability program.