France may lose credit rating

New economic problems waiting for France

In brief: The financial problems of the European Union are becoming more threatening. France is worried about losing their stable credit rating.

France recognized that the preservation of its credit rating would be difficult to implement without the use of any hard budget decisions, after the German government earlier hinted that Berlin might resort to raising taxes to reduce deficits.

Budget Minister Francois Barwen (Francois Baroin) said Sunday that France should not take for granted its AAA rating, which allows you to Paris to occupy relatively cheaply on international markets and to finance the budget deficit is large enough. “We must maintain our rating of AAA, reduce debt, to avoid too great a reliance on markets, and we must maintain this order in the long term,” – he said in an interview on French television. France predicts that its budget deficit will amount to 8% of gross domestic product this year. The Government’s objective – to reduce it to 3% by 2013, currently being negotiated pension reform and the decision to freeze the cost of the central government during the 2011-13 years. We also consider an amendment to the Constitution to establish binding limits the budget deficit.

Pavel Nurminen
2010-05-31 11:06, Economics.

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