Fitch Publishes Special Report on French Public Finances
FITCH PUBLISHES SPECIAL REPORT ON FRENCH PUBLIC FINANCES
Link to Fitch Ratings' Report: French Public Finances
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656509
Fitch Ratings-London-23 November 2011: Fitch Ratings has published a Special Report on French Public Finances, examining the implications for the government deficit and debt, and France's sovereign credit profile, of weaker economic growth and the potential contingent liabilities arising from the intensification of the eurozone crisis.
According to Fitch, the recent adoption of new fiscal measures by the French government has enhanced the credibility of the government's consolidation program. However, additional measures are still likely to be necessary if the 3% of GDP deficit target is to be achieved by 2013, with Fitch projecting the deficit in 2013 to be around 4% of GDP. In Fitch's baseline scenario, the debt to GDP ratio will peak at 91.7% in 2014, in line with projected peak debt levels for France's main 'AAA' peers and consistent with France retaining its 'AAA' status.