Economy: how does Bercy try to coax Standard & Poor's?

Barthélémy Philippe, edited by Alexandre Dalifard / Photo credit: MAEVA DESTOMBES / HANS LUCAS / HANS LUCAS VIA AFP 06:06, 02 June 2023

Maximum pressure on Bercy... This Friday evening, at the close of the financial markets, the American agency Standard and Poor's will render its verdict on the rating of the France, which could fall from AA to AA-. After Fitch's warning shot a few weeks ago, a further downgrade of the French rating may be enough to scare investors, raise borrowing rates and therefore, ultimately, increase the debt burden. But Bercy has done its utmost to avoid this scenario.

Reduce public debt to 108% of GDP in 2027

Bruno Le Maire met with the agency's analysts to detail the budgetary trajectory of the France. Bercy wants to contain the public debt, nearly 3000 billion euros currently, by bringing it to 108% of GDP in 2027. The same goes for the public deficit, which is due to fall below 3%. In addition, Elisabeth Borne asked her ministers to identify 5% savings in their perimeters. And in the final stretch, the government froze 1% of planned public spending in 2023, or nearly 2 billion euros.

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But for economist Marc Touati, all these efforts are in vain. "If Standard and Poor's does its job, it has to downgrade the France. Even if the government tries to give guarantees of seriousness, it announced several months ago that the public deficit would increase further in 2023. And so we are not credible, we do not keep our commitments, "he says at the microphone of Europe 1. The entourage of Bruno Le Maire evokes a minister at work and serene. "When you have passed an exam, you wait for the result, it is useless to bicker," confides a relative to Europe 1. "Whatever the rating, Bercy will apply its strategy on public finances," adds the same adviser.