Baptiste Morin / Photo credits: Reuters 09:00, February 19, 2024
Bruno Le Maire announced last night a new direction for the State's economic policy to save public finances. On the horizon, Bercy especially fears the date of April 26, which the government has circled in red marker. On that day, the Moody's and Fitch agencies will update their rating of France
Exit the 1.4% that the Minister of the Economy still judged, until recently, to be possible. To save public finances, Bruno Le Maire announced a new direction for the State's economic policy. Bercy fears the country's rating will be updated by the Moody's and Fitch agencies on April 26. For 2024, the executive is now opting for 1% growth.
The State goes on a diet
A necessary revision according to Éric Dor, director of economic studies at IESEG. "It's annoying for Bercy, but it's a question of credibility. In any case, the rating agencies do their own forecasting exercises. They wouldn't keep this 1.4% anyway." To maintain its deficit reduction trajectory, the State is going on a diet, ten billion in immediate savings: five billion in the operation of ministries and five billion in public policies, "MaPrimeRenov'" in particular.
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And Bruno Le Maire excludes nothing: “We also retain the possibility of making an amending budget in the summer depending on economic and geopolitical circumstances.” A message sent to the rating agencies. The executive wants at all costs to avoid a downgrade of France's rating and therefore an increase in the rates at which the State borrows.