Economy. S&P maintains France's rating and negative outlook.

The rating agency S&P left France's debt rating unchanged on Friday, at AA- and with a negative outlook since February, meaning it could be downgraded.

“An effort for all French people”

The agency did not issue any comment, leaving its rating unchanged. When contacted by AFP, the Ministry of Economy "took note" of this decision, without providing further details.

On February 28, S&P had given the country's AA- ("good" credit quality) rating a negative outlook, citing public finances "under pressure" and "limited political support for reforms" despite the adoption of the 2025 budget, a threat of a downgrade that did not materialize on Friday even though the situation has hardly changed since.

Prime Minister François Bayrou warned earlier this week that he would ask for "an effort from all French people," not ruling out a general increase in VAT to finance social spending, the "social VAT." He must raise €40 billion next year between the State, Social Security, and local authorities.

He admitted on Wednesday before the Senate that "none of the measures" that will make up the general plan to return to balance in public finances that the government will propose "before July 14" had yet been finalized.

Worst deficit in the Eurozone

A method of consultation with social partners and especially political parties assumed, to avoid a new parliamentary censure, but which leaves uncertainty hanging over the strength of the measures which can be taken by the end of September during the presentation of the budgets.

On Monday, the Court of Auditors also warned of the risk of a "liquidity crisis" in Social Security next year due to the "out of control" spiral of its spending.

Twice before Parliament on Wednesday, Public Accounts Minister Amélie de Montchalin surprised everyone by firmly stating the objective of returning Social Security to balance by 2029.

According to the European Commission's revised economic projections, published on May 19, France will record the worst public deficit in the eurozone in 2025 and 2026, at 5.6% and 5.7% of GDP respectively. The government, for its part, is still forecasting 5.4% in 2025 and 4.6% in 2026, returning to below 3% in 2029.